HONG KONG (Reuters) – Hong Kong’s retail sales climbed for the seventh straight month in August, helped by a stabilising COVID-19 situation, an improved labour market and economic recovery and thanks to a boost from a consumption voucher scheme (CVS).

On Thursday, government data revealed that August’s retail sales increased 11.9% compared to a year before. They reached HK$28.6 Billion ($3.67 Billion). This is compared to July’s revised 2.8% increase.

A government spokesperson said that the CVS “should continue to bode well to local consumption sentiment in all of the year.” He was referring to the electronic coupons given to consumers for use in shops.

Retail sales increased 10.6% in volume terms in August, compared with an increase of 0.7% the previous month.

Total retail sales rose 8.1% over the past eight months in 2021 in both volume and value terms.

The value of online retail sales increased 16.5% year-on-year in August, compared to a revised increase of 28.8% for July.

According to data, sales of precious gifts like jewellery, watches, clocks, and clocks, which depended heavily upon tourists visiting the island, rose 28% in August against a revised increase of 26.3% in July.

The August sales of clothing, footwear and other allied goods rose by 40.1%, compared to a 30.9% increase in July.

After three months of declining tourist arrivals, August saw a 143% increase in tourists to the area. They reached 10,811 from August one year ago. This is compared to a drop of 57.9% in July.

The spokesman stated that “keeping the epidemic under control is crucial to a full recovery of the retail industry and the entire economy.” He also said it was important to work towards widespread coronavirus vaccines.

After a COVID-induced slump last year, 7.6% was recorded in the second quarter. In addition to increasing its growth projections for 2021 from 3.5%-5.5%, the government raised their forecast for growth to 5.5%-6.5%.

In the June-August quarter of 2020, seasonally adjusted unemployment rates fell to 4.7%. It was the lowest rate since January-March 2019.