Hong Kong's July retail sales rose 16.5% from a year earlier helped by an increase in visitor arrivals and positive consumption sentiment, government data showed on Thursday.

Sales increased to HK$33 billion ($4.21 billion), marking an eighth consecutive month of growth. That compared with a revised 19.5% rise in June.

In volume terms, retail sales increased 14% year-on-year in July, compared with a revised 17.4% of growth in June. ($1 = 7.8439 Hong Kong dollars) (Reporting by Donny Kwok and Twinnie Siu; Editing by Christian Schmollinger)