Hong Kong retail sales rose 0.8 percent to $25.3 billion in December 2008 year over year, according to data published by the Census and Statistics Department on Monday. After adjusting for inflation, the volume of retail sales fell 0.7 percent during the month.

The volume of sales of jewelry, watches, clocks and valuable gifts declined 9.8 percent in December, registering as Hong Kong’s second worst performing retail category for the month. It was preceded only by sales of motor vehicles and parts, which decreased by 22.3 percent. The strongest growth category was consumer durable goods, which registered a sales volume increase of 16.9 percent, followed by fuels, which rose 9.8 percent. The department did not provide sales values for the respective categories.

The department cited a government spokesperson in saying that retail sales in December had improved from the previous two months, “amid some stabilization in both inbound tourism and local consumer spending.”

Fourth quarter retail sales, nevertheless, fell 3.6 percent by volume, compared with the third quarter. For the full year 2008, total retail sales increased 10 percent by value and by 5 percent by volume, compared with 2007.

The government spokesperson added that the near-term prospect for Hong Kong’s retail sector will continue to be overshadowed by the global economic downturn.