Hong Kong Trade Development Council's export confidence index slid 5 points from the previous quarter as exporters remain cautious amid uncertainties on potential tariffs and the quiet Chinese New Year period.
The current performance index fell 4.9 points quarter on quarter to 46.5, and the expectation index was down 5 points to 46.9, reflecting persisting global trade and economic uncertainties, especially changes in US trade policies.
Exporters' outlook on trade values hovered around the neutral threshold, with the current trade value sub-index remaining in expansionary territory at 50.9, slightly above the expected 49.1.
The jewelery and clothing sector outperformed in the first quarter, with the current reading of jelwery up 5.9 points to 57.1 and was 1.1 points higher than expected, while the current performance of clothing climbed 6.1 points to 52.1 but was 1.3 points lower than expected.
However, electronics exporters fell 7.1 points to 44.9 and were 0.7 points lower than expected.
HKTDC said the data were collected during January and February before the conflict in the Middle East.
Bruce Pang, director of research at HKTDC, said global geopolitical instability affects many of Hong Kong's main export markets, including Southeast Asia and the mainland.
He added that demand in the electronic products and other consumer goods industries continues to show resilience in the long term, Hong Kong's trade prospects remain positive yet cautious until global geopolitical tensions ease.
Gloria Leung
