Consumer confidence in Hong Kong climbs to 108 points

Spike in mainland visitors remained a booster.

According to Nielsen's report, consumer confidence in the economy increased in nine of 14 Asia-Pacific markets measured in Q1 compared to Q4 2012, and delivered eight of the 10 highest index scores of 58 countries.

Indonesia rose five index points to 122, jumping ahead of India’s index of 120, which declined one point. Confidence in the Philippines (118) and Thailand (116) remained high in Q1. China’s index of 108 held steady from Q4 last year and Hong Kong increased 23 points to 108. Malaysia’s index of 107 increased four points in first quarter.

“The rise in Hong Kong’s consumer confidence reflected government measures to increase basic and additional child allowances, provide electricity subsidies, reduce salary taxes, as well as other concessionary measures,” said Eva Leung, managing director of Nielsen Hong Kong.

“Additionally, an increase in mainland visitors continued to be a driving force of consumer confidence, with sustainable year-on-year growth of 15 percent.

Retail sales regained double-digit growth momentum of 16 percent in Q1 2013, largely fueled by the momentum of durables and luxury goods. Fast-moving consumer goods also delivered double-digit growth of 14 percent. While stronger optimism returned to the economy with a positive growth momentum, we still need to stay cautious with possible political and economic volatility. 

“In general, however, while Asian economies, including China and India, will experience slower growth than in the past, they will still be expanding much faster than the rest of the world due to a rising pool of middle-class consumers and ongoing urbanization,” said Dr. Bala.

“In the near-term, the effects of government austerity in China will have to be watched closely, while in India, inflation will continue to be a problem along with political uncertainty associated with national elections next year,” said Dr. Bala.