Hong Kong’s retail sales in November 2025 retreated a little from the previous month, but financial analysts are optimistic that the stock and property markets will support consumer spending this year.

According to Census and Statistics Department data released on Friday, the value of total retail sales in November 2025, provisionally estimated at HK$33.7 billion ($4.32 billion), increased at an annual rate of 6.5 percent, lower than the expected rate of 8.6 percent.

The year-to-year increase of the value of total retail sales in October was revised to 6.9 percent. For the first 11 months of 2025, the value of total retail sales increased 0.4 percent from a year ago.

In terms of retail outlets, the value of sales of electrical goods and other consumer durable goods that are not classified elsewhere soared 38.6 percent, followed by medicines and cosmetics (9.2 percent) and optical shops (7.3 percent).

ALSO READ: HK economy tipped to grow 2.7% in 2026; retail sales, exports lead

A government spokesman said that retail sales sustained recovery momentum in November, and looking ahead, “the gradual improvement in local consumption sentiment amid sustained economic growth, coupled with the vibrant growth in inbound visitors, will continue to benefit retail businesses”.

Hong Kong Retail Management Association Chairwoman Annie Tse Yau On-yee described the overall retail market in November as stable, showing single-digit year-on-year growth, but not a market recovery.

She further added the Christmas and New Year’s holidays in December had boosted tourist visits to Hong Kong, which she expects will benefit the jewelry and watch industries.

The city’s retail sales figure has been expanding year-on-year for seven consecutive months as of November after a 14-month contraction.

READ MORE: HK economic growth seen edging above 3% for 2025

“We anticipate retail sales to grow 5.5 percent this year, as the wealth effect from a more active stock market and a stabilization in residential property market has supported consumer spending that offsets challenges in the labor market,” Hang Seng Bank Chief Economist Kelvin Lau said.

Gary Wan, principal economist and strategist at Dah Sing Financial Group, said the outlook for consumption remains uncertain, with consumer-goods prices continuing to face downward pressure, while the Hong Kong job market may be undergoing structural adjustments that exert significant pressure on consumption and tourism-related industries.