[cs_content _p=’7314′][cs_element_section _id=”1″ ][cs_element_layout_row _id=”2″ ][cs_element_layout_column _id=”3″ ][cs_element_text _id=”4″ ][cs_content_seo]The Hong Kong Trade Development Council (HKTDC) has released its Export Confidence Index for the third quarter of 2024, revealing that local traders are optimistic about their business prospects. Despite a slight dip in overall sentiment compared to the previous quarter, the report indicates sustained moderate growth across various industry sectors.
The HKTDC Export Confidence Index, a quarterly survey capturing the views and expectations of Hong Kong-based traders, recorded a minor decline in the overall index. Nevertheless, a majority of the sub-indices remained above the 50-point threshold, signifying expansion and positive outlook. This is an encouraging sign for Hong Kong exporters, who continue to navigate challenges such as trade restrictions and cost pressures.
Strong Sales and New Orders Drive Positive Sentiment
The Current Performance Index, which reflects real-time market activity, rose by 1 point to 52.6, highlighting robust sales and new orders. This increase was supported by growth in the Trade Value Sub-Index (56.2, up by 2.5 points) and the Procurement Sub-Index (57.3, up by 3.3 points). Although the Sales & New Orders Sub-Index saw a slight dip of 1.8 points, it remained in expansionary territory at 55.7, signaling confidence among traders.
The Expectation Index, which assesses future business prospects, also stayed in positive territory at 51.4, despite a 2.9-point decline. This was mainly due to a drop in the Trade Value Expectation Sub-Index, down by 8.5 points to 51.7. However, traders remain hopeful for sustained growth in sales and new orders, with the Sales & New Orders Expectation Sub-Index standing at 54.6.
Cost Pressures Persist but Show Signs of Easing
Cost pressures continue to be a significant concern for Hong Kong exporters. Both the Current and Expectation Cost Sub-Indices improved slightly, but remained around the 35-point level, indicating ongoing challenges related to rising operational expenses. The survey noted that costs related to transport, labour, and production remain the top challenges for exporters.
Despite these pressures, exporters have reported growth in sales and new orders across key markets, particularly within the ASEAN region and mainland China. Clothing exporters are particularly optimistic, with a Current Performance reading of 61.2, followed by Toys at 58.7 and Jewellery at 56.4.
Industry Outlook: A Resilient Future
HKTDC’s Senior Economist Nicholas Fu highlighted the resilience of Hong Kong exporters: “Exporters from five out of the six key sectors expect the current positive business momentum to continue. While cost pressures are expected to remain high, we anticipate a slight improvement in the near future.”
The survey also explored the impact of recent trade restrictions and tariffs on certain China-origin exports. Notably, 60% of respondents reported no adverse effects on their business, while 39% expected only a moderate downside.
In response to these challenges, many exporters are adopting more cautious business strategies. However, awareness of new regulations, such as the EU’s Ecodesign for Sustainable Products Regulations, remains low, with fewer than 20% of respondents familiar with the upcoming changes.\n\n[/cs_content_seo][/cs_element_layout_column][/cs_element_layout_row][/cs_element_section][/cs_content]
