HONG KONG, Aug 3, 2009 (AFP) - Hong Kong retail sales dropped 4.8 percent year-on-year in June, the government said Monday 3 August, narrowing from the previous month's decline following a rebound in the stock and the property markets.

Total retail sales in June were 21.1 billion Hong Kong dollars (2.71 billion US), the Census and Statistics Department said in a statement.

The figure is an improvement on the 6.2 percent slump recorded in May.

After netting out the effect of price changes over the same period, the volume of total retail sales dipped 4.2 percent in June, compared to a year earlier.

The volume of sales of motor vehicles and parts decreased the most year-on-year, by 15.2 percent. That was followed by sales of apparel, jewellery, watches and clocks, and valuable gifts, which dropped between 8.2 and 10.6 percent.

However, the volume of sales of fuels and commodities in supermarkets increased 2.7 percent and 1.2 percent respectively in June year-on-year.

The government said the narrowing decline in June indicated that consumer confidence had held up firmly in recent months.

The spokesman said the trend was supported by a stabilising economy, the government's relief measures, and improved performance of asset markets.

But he added that the outlook for retail business was still subject to uncertainties surrounding the pace of global economic recovery and the impact of human swine flu.