Hong Kong March retail sales fall 2.9% as tourism takes hit

Hong Kong retail sales fell 2.9 per cent by value in March from a year earlier, underscoring the impact of a drop in mainland Chinese tourists and tighter visa rules on residents from Shenzhen who visit the Asia financial centre. 

PHOTO: REUTERS

5 May5:47 PM

[HONG KONG] Hong Kong retail sales fell 2.9 per cent by value in March from a year earlier, underscoring the impact of a drop in mainland Chinese tourists and tighter visa rules on residents from Shenzhen who visit the Asia financial centre.

China last month limited the number of visits that residents from the city just across the border can make to Hong Kong in a bid to ease the flow of mainland visitors following protests and clashes that have stirred up tensions.

Chinese authorities also aim to reduce import taxes on certain unspecified import goods before the end of June to help boost domestic spending at a time when the economy is slowing.

For the first quarter of 2015, the value of retail sales fell 2.3 per cent from a year earlier, while the volume of retail sales was virtually unchanged over that period.

For March, retail sales fell to HK$38.4 billion (S$6.61 billion) but climbed 0.8 percent by volume.

That followed a 4.9 per cent rise in retail sales value in February, lifted by the Chinese New Year holiday, and a 14.5 per cent drop in January in the most marked drop since 2003. "Most types of retail outlets recorded year-on-year declines in sales, conceivably reflecting the slowdown in inbound tourism," the government said in a statement. "The retail sales performance in the near term is likely to be constrained by the weaker performance of inbound tourism." Sales of jewellery, watches and clocks fell 18.6 per cent by value in March compared with a 9.2 per cent decline in February and a 21.4 per cent drop in January. They dropped 16.6 per cent for the first quarter, against a 1.0 per cent rise for the same quarter a year earlier.

Some watch sellers in Hong Kong are scaling back operations amid sluggish business due to a crackdown on corruption launched by Chinese President Xi Jinping and a drop in tourist arrivals. Some retailers are asking for discount of up 40 per cent before renewing their leases, according to some property consultants.

Travel industry executives say political tension in Hong Kong, including democracy demonstrations and protests against mainland shoppers, in which some people have been harassed, have discouraged mainland tourists. Some of them avoid Hong Kong and shop elsewhere tapping the weak currencies there.

REUTERS

    
 

Spain records biggest fall in April jobless claims in almost 20 years

Spain registered its steepest decline in the number of jobless people for April in almost two decades, government data showed Tuesday, as the eurozone country's economic recovery gathered pace. 

PHOTO: REUTERS

5 May6:17 PM

[MADRID] Spain registered its steepest decline in the number of jobless people for April in almost two decades, government data showed Tuesday, as the eurozone country's economic recovery gathered pace.

In the third straight month of falling unemployment, jobless claims declined in April by 118,923 to 4.33 million from March.

That is the biggest drop for the month since the current statistical series began in 1996, the labour ministry said in a statement.

On a seasonally adjusted basis the number of registered unemployed fell by 50,160.

Spain's seasonal employment market, which includes jobs in the country's vital tourism industry, is often tight in April as hotels and restaurants take on extra staff for the Easter break.

The number of registered unemployed was down by 351,285 or 7.5 per cent over April 2014, its strongest decline in 19 years, the ministry said.

The number of people without work fell across all sectors and in every region.

Deputy Labour Minister Engracia Hidalgo said in a statement that the data show the "solid and positive" trend in unemployment is consolidating.

The labour ministry's monthly figure is a different measure from the quarterly unemployment rate, which stood at 23.78 per cent in the first quarter, according to the National Statistic Institute.

The institute, which includes in its estimate other job seekers who are not signed on, said there were 5.44 million unemployed in Spain at the end of March.

Spain returned to growth in 2014 with an expansion of 1.4 per cent after five years of recession or stagnation following the collapse of a building boom in 2008.

Spain's conservative government, which is facing a year-end general election, last week hiked its economic growth forecast to 2.9 per cent for 2015 and 2016, a prediction unions said was too optimistic.

It had previously expected growth to reach 2.4 per cent in 2015.

The government forecast the unemployment rate would fall to 22.1 per cent in 2015.

AFP

    

US service sector picks up speed in April: ISM 

5 May10:54 PM

[WASHINGTON] The US economy's service sector sped up in April after the first-quarter sag, the Institute for Supply Management reported on Tuesday.

The ISM purchasing managers index for services, by far the lion's share of economic activity, rose to 57.8 from 56.5 in March. A level above 50 represents expansion.

Business activity and output surged by 4.1 points to 61.6, the new orders sub-index rose 1.4 points to 59.2, and hiring ticked higher by 0.1 point to 56.7.

Price gains slowed, and new export orders contracted, confronted by the strong dollar.

Survey respondents in 14 of 18 service business sectors reported growth in April, ISM said.

"Overall, we see positive trends; spending has improved," said one from the retail trade.

"Business remains strong for this time of the year and looks good for the next 12-18 months," said a person from the wholesale trade.

AFP