What: Retailers saw consumption growth slow more than expected in July as social distancing measures continued to constrain spending and local shoppers awaited the arrival of electronic vouchers the following month.

Why it is important: The Hong Kong government is distributing HKD 5,000 (USD 643) consumption vouchers to eligible residents to encourage spending.

Retail sales value was HKD 27.2 billion (USD 3.5 billion), up 2.9% from a year ago, according to a government report. That’s well short of the median economists’ forecast for 10% growth. Retail sales volume rose 0.9%, also short of expectations for a 6.9% advance.

“The electronic consumption vouchers that the government began to disburse in August have helped stimulate consumption sentiment and will render support to the retail business in the rest of the year,” the report said.

Hong Kong Retail Growth Slowed Again in July