Hong Kong retail suffers

Government data from Hong Kong shows that retail sales in July fell 11.4% from a year earlier as visitor numbers began to fall and social unrest hurt consumer sentiment. The unrest which originated in June over a now-suspended extradition bill, has now been transformed into broader calls for democracy for the former British colony which returned to Chinese rule in 1997. Retail sales fell to HK$34.4 billion in July, a sixth consecutive month of declines. The decline is exacerbated by the strains of China's economic slowdown, a weak Chinese yuan, and fallout from the Sino-US trade war. The government recently cut its full-year growth forecast to 0-1%, down from 2-3% previously. Hotel occupancy has been falling and retailers are expecting further drops. According to one report, department store operator Lifestyle has described the retail sector as challenging as people lose the appetite to consume.
