Hong Kong Consumer Confidence Survey (First Quarter Report 2012)

23 Apr

Press release

The first quarter consumer confidence survey in 2012 released today by the Bauhinia Foundation Research Centre (BFRC) showed a sign of rebound in local consumer confidence in the medium-term future. 

The BFRC commissioned the Public Governance Programme of Lingnan University to interview over 1,000 respondents in a telephone survey between 22 and 29 March 2012.

The Bauhinia Hong Kong Consumer Confidence Index (BHKCCI) - an index of consumer confidence over economic expectations and behaviours in the next three months – rose further from 101.9 in December last year to 104.3 in March this year. Meanwhile, consumer expectations of economic conditions over the next 12 months have also improved, as reflected in the rebound of the Bauhinia Hong Kong Consumer Expectations Index (BHKCEI), from a record low of 74.9 in the previous quarter to 82.1 in this survey. BHKCCI and BHKCEI are set to be 100 in the base period (June 2009). 

Commenting on the findings, the BFRC Chairman Anthony Wu said, “We believe an improvement in consumer confidence in Hong Kong’s short-term and medium-term economic conditions may be attributed to the signs of stabilisation of the global economy, which may, at the same time, give reasons for the revival of confidence in investment in financial products over the past three months.”

“The softened property market cooling measures and bank discounts on mortgage rates have attracted home buyers, giving rise to the improved expectations for property purchases by respondents’ families in the next three months,” he added.

Detailed findings of the survey are as follows: 

• Respondents’ current perceptions of Hong Kong’s overall economic conditions, as well as their expectations for the next three months and the next 12 months have improved very significantly. 

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

• Respondents’ current situations of household incomes, as well as their expectations for the next three months and those for the next 12 months have remained unchanged.

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

• Property purchases by respondents’ families over the past three months have improved slightly and their expectations for the next three months have improved very significantly. 

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

• Respondents’ spending on non-recurrent large purchases over the past three months and their expectations for the next three months have worsened. Respondents’ investment in financial products over the past three months has improved very significantly, and their expectations for the next three months have worsened slightly.

This two-part consumer confidence survey was the 12 th quarterly survey commissioned by the BFRC since 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 employment 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.