Business receipts of major service industries ‘improve’ in Q2

This is thanks to the moderated epidemic and eased health measures. 

Business receipts of major service industries improved in the second quarter of the year as the local epidemic moderated and social distancing measures are eased, the Census and Statistics Department (C&SD) reported.

“Business receipts of many major service industries recorded year-on-year increases in the second quarter, notably accommodation services, water transport and air transport, though this was partly attributed to a low base of comparison or surging output prices,” a government spokesman said.

Read more: Business receipts of service industries rise in double-digits in Q3

The accommodation services and transportation sectors saw double-digit increases in business receipts of 43.5% and 26.4%, year-on-year, respectively. The financing industry, except banking, meanwhile, declined by 15.7% over the same period. 

On a seasonally adjusted basis, business receipts of the accommodation sector grew 67.4% quarter-on-quarter, whilst food services, retail, and real estate increased by 51%, 16.3% and 13.1%, respectively.

“On the other hand, business receipts of insurance turned to a decrease, and those of financing (except banking), courier, and warehousing and storage saw widened declines,” the spokesman also said. 

The C&SD spokesman added that the deteriorating global economic crisis will continue to weigh down externally oriented services. 

The tightened financial conditions will also likely put a constraint even as the labour market conditions and consumption voucher scheme is expected to support domestic demand.