HONG KONG, July 2, 2009 (AFP) - Hong Kong retail sales slumped 6.2 percent year-on-year in May, the government said Thursday 2 July, as consumers continued to stay away from luxury goods amid the economic downturn.

Hong Kong skyline at night

The value of total retail sales in May amounted to 21.7 billion Hong Kong dollars (2.78 billion US), the Census and Statistics Department said in a statement.

After netting out the effect of price changes over the same period, the volume of total retail sales decreased by 6.4 percent in May, compared to a year earlier.

The volume of sales of motor vehicles and parts decreased by the most year-on-year, by 32.2 percent. That was followed by sales of jewellery, watches and clocks, and valuable gifts, which were down 10.9 percent.

However, the volume of sales of commodities in supermarkets increased by 0.6 percent in May when compared with a year earlier.

A government spokesman said the near-term outlook for retail business would continue to be affected by uncertainties over the pace of economic recovery and the impact of swine flu on tourism.

But he added that signs of economic recovery and the government's relief measures would provide some support to consumer confidence and retail trade.