The value of retail sales experienced its largest drop in history in October, cratering 24% from the same period last year, according toSales of luxury goods such as watches, clocks, and jewelry tumbled 43%, while department-store sales declined 31%. Furniture sales decreased the least out of any reported category, sliding 8.2% from the same period last year.
October includes "Golden Week," a Chinese holiday break stretching from the first of the month to the seventh. The break is typically a popular time for mainland Chinese to travel and spend money, but many have avoided going to Hong Kong amid the ongoing unrest. The city has been upended by intensifying pro-democracy protests in recent months. Hong Kong fell into a recession for the first time in more than a decade in October after recording a GDP contraction of 3.2% for the third quarter. in September, warning the protests may cause "long-lasting damage" to the economy.
The demonstrations began in June over an extradition bill that would have allowed Hong Kong residents to be tried in mainland China. The proposed bill was withdrawn in September, but the protests have continued.