Exports of goods fell in July and August
 Trade performance continued to be weak in July and August after some relative improvements in the second quarter. The year-on-year rates of decline in the value of merchandise exports were at double-digit levels of 19.9% and 13.9% in July and August respectively. Nevertheless, Hong Kong’s export performance continued to fare better than many other Asian economies.
Trade outlook remains uncertain in the near term, depending on when the weak import demand in the advanced economies will turn around.
Decline in retail sales volume narrows
 Retail sales volume showed a smaller year-on-year decline of 1% in August, due to the firm consumer sentiment amidst the stabilization of labor market as well as the strong performance in the asset markets. The government’s earlier relief measures, together with the rebound in inbound tourism, also helped. On a seasonally adjusted basis, retail sales volume actually recorded some increases over the past several months.
Investment sentiment appeared to have improved somewhat lately, with the retained import of capital goods reverted to a year-on-year increase in August.
Residential property market remains active
The residential property market remained active, with prices and rentals rising further. This was particularly evident in the luxury segment of the market. Overall apartment prices were now just slightly below the peak in mid-2008. The numbers of transactions in August and September remained comparable to the post-tsunami highs in the past several months.
Unemployment rate remains stable
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Note: (*) Figures used are 3-month averages. |
The labor market stabilized in recent months amidst the improvement in the local economy. The seasonally adjusted unemployment rate stood at 5.4% in June-August 2009, the same level as the previous two rolling three-month periods. The underemployment rate edged up further to 2.4%. The unemployment rate is expected to remain high in the near term as employment creation should be slow at the initial stage of recovery.
Inflation pressure eases further
 Price pressures, measured in terms of both the headline CPI and underlying CPI, eased further in July and August, as both import prices and local business costs softened amidst the weak global economic conditions.
In a year-on-year comparison, the headline and underlying inflation rates in August were -1.6% and -0.3% respectively. The decline in underlying CCPI mainly reflected price declines in food and energy-related items, together with the slower increase in private housing rents. Consumer price inflation is likely to remain subdued in the coming months.
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