Jewellery, watch and clock retail sales in Hong Kong fell by 5% in July reflecting the continued slowdown in the larger retail sector over the last few months, according to media reports from the country. In volume terms, the sector saw a 2.8% decline.

Overall, retail sales in July were down 2.8% in value terms, though they were up by 1.9% in vloume terms. For the first seven months of 2015, retail sales dropped 1.8% in value, but rose by 1.7% in volume terms.

The main reason for the decline was reported to be the fall in tourist arrivals, particularly from Mainland China. High rentals and labour costs have added to the burden. It is widely believed that the slowdown is likely to continue for the rest of the year, say the reports.

Official statistics reveal that tourist arrivals were down 8.4% in July, while the number of visitors from the mainland fellby 9.8%.

However, there was a silver lining, with the Hong Kong Retail Management Association (HKRMA), the body that compiles the figures, reporting that the drop in July at 5% was lower than the double-digit declines that the sector has witnessed over the last few months.