February retail sales for Hong Kong were down 2 per cent by volume, year on year, reflecting a more moderate domestic demand, higher unemployment and a weaker stock market.
At the same time the figures from the Census and Statistics Department showed the value of retail sales during February was HK$13.5 billion, 4 per cent lower than a year earlier.
The February performance followed a modest improvement in January, when retail sales increased 3 per cent in volume terms year on year.
The decline in volume was partly explained by the timing of the Lunar New Year holiday, which fell in late January but occurred in February last year.
That meant the seasonal surge in spending had to be taken into account when undertaking a comparison. When figures from the first two months are combined they show an annualised decrease of 1 per cent in value terms, and a 1 per cent increase in volume terms.
A government official said the figures showed a further slowdown in retail sales growth, indicating more moderate domestic demand and inbound tourist spending.
Bank of East Asia chief economist Paul Tang Sai-on said the retail sales volume decline in February was partly attributed to an increase in unemployment.