Hong Kong Confident

The people of Hong Kong are 'riding a tide of confidence in the economy', according to the latest ACNielsen Hong Kong Consumer Confidence Index. The overall score passed 100 last quarter for the first time since its launch in the 1980s.

The Index is released in February, May, August and November every year. The latest results come from a survey in mid-April and gave a total score of 102, up from 99 last quarter.

Fewer people feel that the economic situation is bad (10% in April 2005 vs. 22% in January 2005) and more believe the economy will continue to improve in the next 12 months (50% in Apr '05 vs. 46% in Jan '05).

Ms Amy Lee, Director, ACNielsen Customized Research Hong Kong, says there has been a turnaround in the views of specific consumer segments in particular. 'For example, in previous surveys, women were less optimistic than men, but this time round women (52%) have become more optimistic than they were in the previous round and slightly more than their male counterparts (48%) in the ecomony in the next 12 months'.

Lower income groups share in the positive mood, with those with household income below HK$18,000 per month recording the greatest jump in confidence in the economic outlook. 'This is a good sign' says Lee, 'as it means the economic rebound has started to filter through to a wider spectrum in the society'.

The 'shopping-spree' atmosphere noted in the city since 2004 continued over the last two quarters, says Nielsen. Hong Kong people 'kept up with their spending desires' - the company's Purchase Intention Index for big ticket items like furniture, real estate, major household appliances, and vehicles etc remained at the high level of 102. 'With the summer holidays fast approaching and the impending opening of DisneyLand, consumers' positive spending desires should continue in the next quarters,' according to Lee. Topping the shopping list of almost a third of Hong Kong people was 'Furniture', followed by 'Plasma/LCD TVs' (21%) and Desktop/notebook PC (13%).

The survey was conducted in mid April among 1,033 consumers aged 15-54. The company is online at www.acnielsen.com

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.

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