People walk past luxury retail stores in Tsim Sha Tsui in Hong Kong, China, on Sunday, May 10, 2020. (PAUL YEUNG / BLOOMBERG)

Hong Kong’s retailers suffered another difficult month in May as the ongoing coronavirus pandemic continued to curtail the city’s key tourism and consumption activity.

While still registering deep monthly declines, Hong Kong’s retail sales situation has shown some signs of improvement since posting back-to-back months of decrease greater than 40 percent in February and March

The city’s retail sales by value fell 32.8 percent from the level a year ago to HK$26.8 billion (US$3.5 billion) for a 16th straight monthly decline, according to a government release. That compares with the median economists’ forecast for a 31.8 percent decline, according to data compiled by Bloomberg. Retail sales by volume also fell 33.9 percent from a year earlier.

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While still registering deep monthly declines, Hong Kong’s retail sales situation has shown some signs of improvement since posting back-to-back months of decrease greater than 40 percent in February and March during the initial wave of coronavirus shut downs.

The city has been able to keep the virus largely under control, with confirmed cases at about 1,200 by the end of June.

Recent moves by the Hong Kong government to gradually loosen some social distancing rules, including some restrictions on indoor and outdoor gatherings, are fueling optimism among the city’s battered retail, accommodation and entertainment industries of a summer resurgence in spending from locals who have been stuck at home for months.

READ MORE: Hong Kong's retail sales continue to slump in April

The long-awaited distribution of a HK$10,000 cash handout to Hong Kong residents beginning in July may also help spur spending.