Research | Regional and economic development | 2010-07-14

Hong Kong Consumer Confidence Survey (Second Quarter Report 2010)



Local consumers’ confidence over economic expectations and economic behaviours in the next three months weakens in comparison with that of the previous quarter, according to the second quarter consumer confidence survey in 2010 released today by the Bauhinia Foundation Research Centre (BFRC).

BFRC commissioned the Public Governance Programme of Lingnan University to interview over 1,000 respondents in a telephone-based survey between 7 and 12 June 2010.

The Bauhinia Hong Kong Consumer Confidence Index (BHKCCI) - an index of consumers’ confidence over economic expectations and behaviours in the next three months - has fallen to 111.0 in June 2010 from 117.7 in the previous survey (March 2010).

Meanwhile, consumers’ expectations of economic conditions over the next 12 months has significantly weakened, as reflected in the drop of the Bauhinia Hong Kong Consumer Expectations Index (BHKCEI) from 102.5 to 91.4 during the same period.

BHKCCI and BHKCEI are set to be 100 in the base period (June 2009).

BFRC Chairman, Mr Anthony Wu, said, “To a certain extent, the decrease in consumers’ confidence is believed to be attributed to emerging signs of property market adjustments and stock market fluctuations that occurred shortly before the data collection of this survey.”

Detailed findings of the survey are as follows:

• On Hong Kong’s overall economic conditions, both respondents’ current perceptions and expectations for the next three months and the next 12 months have worsened very significantly, as compared with the previous quarterly survey.

• Respondents’ current perceptions of Hong Kong’s employment situations and their expectations for the next three months have worsened very significantly; and their expectations for the next 12 months have worsened significantly.

• Respondents’ current perceptions of household incomes and their expectations for the next three months and the next 12 months have worsened slightly.

• The employment situations of respondents’ family members have stayed unchanged over the past three months. Their expectations for the next three months have slightly worsened.

• Over the past three months, property purchase by respondents’ families has worsened very significantly. However, their expectations for the next three months have improved significantly.

• Respondents’ expenses on daily necessities over the past three months have worsened, while their expectations for the next three months have improved slightly.

• Respondents’ spending on non-recurrent large purchases over the past three months has worsened, while their expectations for the next three months have improved slightly.

• Over the past three months, respondents’ investment in financial products has worsened very significantly and their expectations for the next three months have also worsened.

This two-part consumer confidence survey was the fifth quarterly survey commissioned by the BFRC, with the first one completed in June 2009. Questions in the first part of the survey are related to respondents’ perception of Hong Kong’s overall economic conditions, Hong Kong’s unemployment situations and respondents’ household incomes in three timeframes (i.e. the current situation, the next three months and the next 12 months). Questions in the second part are related to respondents’ various economic and consumption behaviours for the past three months and the next three months.
 




Appendix

Full Report