Hong Kong business confidence stable but consumers downcast

Melody Chen

The city's business confidence has remained stable despite a drop in consumer confidence.

The Consumer Confidence Index scored 85.9 in the second quarter, down 2.4 percent from the first quarter of this year and 3.3 percent from the same quarter of last year, according to the survey conducted by the Statistical Consulting Unit of the Department of Management Sciences at the City University of Hong Kong.

Commodity prices emerged to be the biggest concern, with the lowest confidence sub-index of 72.1, down 2.3 percent from the previous quarter but up 6.7 percent from that of last year.

Hongkongers had the highest confidence in living standards, with the sub-index standing stable at 106.6, slightly up 1 percent quarter on quarter and down 0.8 percent from a year ago.

Among the six categories scrutinized, stock investment was the only reporting significant growth to reach 87.6, increased by 8.6 percent year on year and 10.9 percent quarter-on-quarter.

Meanwhile, a separate survey showed an improvement in business expectation. The Greater Bay Area Business Confidence Index compiled by Standard Chartered Hong Kong and Hong Kong Trade Development Council, showed the expectations index for business activities rose for the first time in five quarters to 54.8, suggesting an expansionary momentum.

The current performance index for the past three months remained unchanged at 54.1.

However, the innovative and tech industries came under the shadow of the tariff hikes, with their current performance index dropping from 57.8 to 43.9 and expected index plummeting from 54.6 to 38.1.

Hong Kong's current performance index rose to 47.1 from 43.3 and the expectations index increased to 49.7 from 44.2, while Guangzhou's current performance index fell to 53.6 from 57.1 and the expectations index dropped to 56.6 from 60.6.

Shenzhen posted the highest index for current performance at 57.3 and expectations at 57.1.