HONG KONG - HONG KONG retail sales growth slowed to 6.9 per cent year-on-year in September as weak consumer spending linked to the world economic crisis began to bite, the government said on Monday.

Retail sales were worth 20.9 billion Hong Kong dollars (S$3.96 billion) in September, the Census and Statistics Department said. Year-on-year growth represented a drop from 10.4 per cent in August.

Sales rose by 14.1 per cent over the first nine months of 2008 compared with the same period a year earlier. Sales volume increased by 7.6 per cent over the same period.

The volume of sales of electrical goods and photographic equipment increased the most year-on-year, by 13.3 per cent. That was followed by sales of motor vehicles and parts, which was up 13.1 per cent.

Footwear other clothing accessories saw the biggest fall, of 8.3 per cent.

'The growth of retail sales moderated further in September, as consumer spending had weakened against the backdrop of the escalation of the global financial crisis and the ensuing deterioration in economic prospect,' a government spokesman said in a statement.

He warned asset price corrections, slowing economy and deterioration of labour market conditions were expected increasingly to affect consumer sentiment. -- AFP