Local consumers' services consumption growth slipped to its lowest in 4 years

It grew a measly 1.4%.

It has been noted that consumer durables growth fell sharply in the second half of 2015, from 37.5% in the second quarter to 3.6% in the fourth quarter.

According to a research note from Hang Seng Bank, PCE growth also experienced a significant fall over the same period – from 6.2% to 3.2%.

Indeed, in the first two months of 2016, consumer durables growth turned negative, suggesting that PCE growth may slow further in the first quarter this year.

Here's more from Hang Seng Bank:

Hang Seng Bank noted that the figures above indicate that spending by both visitors and local consumers has slowed. Although spending on services by local consumers is also part of PCE and growth of services consumption has historically been more stable than that of goods consumption, it has also weakened recently, to just 1.4% in the last quarter, the lowest growth in four years.

In our view, uncertainty surrounding global economic prospects and financial market volatility have been weighing on consumer confidence and hence spending. With PCE accounting for about two-thirds of GDP, slowing consumption will likely lead to it providing less support for overall GDP growth this year compared with last year. We expect Hong Kong to record GDP growth of 1.8% in 2016, down from 2.4% in 2015.