Hong Kong's gross domestic product rose 1.7% in real terms in the third quarter on the same period last year, compared with 4.2% growth in the second quarter by using chain volume measures, the Census & Statistics Department says.

Net output in all the service activities taken together rose 2.3% in real terms, after growth of 4.2% in the previous quarter.

Net output in the wholesale, retail and import and export trades, restaurants and hotels sector grew 4.8%. The moderation of growth was mainly attributable to the decelerated growth in external trade and slackened consumer spending towards the end of the quarter.

Net output in the transport, storage and communications sector rose 1.8% in real terms. The modest growth of the merchandise trade amid faltering global demand underpinned the further slowdown in growth of the transport and storage services sector.

Due to continued shrinkage in trading in stocks and quieter fund raising activities, net output in the financing, insurance, real estate and business services sector only recorded growth of 0.4%. Net output in the community, social and personal services sector grew 1.4%.