Hong Kong Consumer Confidence Survey (Second Quarter Report 2011)

13 Jul

Press release

Local consumer confidence for the next three months is roughly the same as that of the previous quarter, despite slight deterioration of their expectation for the medium term future, according to the second quarter consumer confidence survey in 2011 released today by the Bauhinia Foundation Research Centre (BFRC).

The BFRC commissioned the Public Governance Programme of Lingnan University to interview over 1,000 respondents in a telephone-based survey between 7 and 13 June 2011. 

The Bauhinia Hong Kong Consumer Confidence Index (BHKCCI) - an index of consumer confidence over economic expectations and behaviours in the next three months – was 109.5 in June, roughly the same as the index value of 108.8 in the previous survey in March 2011.

Consumer expectations of economic conditions over the next 12 months have worsened slightly, as reflected in the fall of the Bauhinia Hong Kong Consumer Expectations Index (BHKCEI) from 86.8 in March to 85.0 in June this year.

Commenting on the findings, the BFRC Chairman Anthony Wu said, “Quite clearly, Hong Kong’s economy continues to perform well and improve steadily as reflected in our consumer confidence index.” 

“But it is also clear that there is concern about the global economy, which is not picking up as fast as expected. In particular, the US economy is sluggish, while the Mainland is also attempting to curb inflation through tightening monetary policies. All these factors, we believe, have had an impact on public perceptions of the employment situations as well as the economic conditions in the medium term future,” he added. 

Detailed findings of the survey are as follows:

• On Hong Kong’s overall economic conditions, respondents’ current perceptions have worsened, while their expectations for the next three months have slightly improved and those for the next 12 months have slightly worsened.

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

• Respondents’ current situations of household incomes have slightly improved, while their expectations for the next three months and 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 been at par.

• Property purchases by respondents’ families over the past three months have slightly worsened, while their expectations for the next three months have remained unchanged.

• Respondents’ expenses on daily necessities over the past three months and their expectations for the next three months have improved.

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

• Respondents’ investment in financial products over the past three months has worsened significantly, while their expectations for the next three months have remained unchanged.

This two-part consumer confidence survey was the ninth quarterly survey commissioned by the BFRC since June 2009. Questions in the first part of the survey are related to respondents’ perceptions 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.