Hong Kong's retail sales by value fell 7.7% in July from a year earlier due to the drop in visitor spending amid an uncertain economic outlook, the Census and Statistics Department said Monday. Dow Jones reported. The decline was an improvement from the 8.9% fall in June, but was worse than the median 7.4% fall forecast from a poll of five economists by The Wall Street Journal. "Looking ahead, the near-term outlook for retail sales will continue to depend on the performance of inbound tourism and on whether the various external uncertainties would affect local consumer sentiment," a government spokesman said in the statement. The drop exceeded a median estimate from analysts calling for contraction of 6.5%. The sales contraction also let up somewhat in volume terms, as a reading of -8.5% for July marked a 1.1 percentage point improvement from the month prior. While S&P this month maintained its AAA/A-1 credit rating for Hong Kong, it warned that the territory could face a downgrade in the next year if economic weakness continues.
