More Hong Kong businesses optimistic for Q3: Survey

Around 17% expect the situation to improve against 11% that expect otherwise.

More Hong Kong firms expect the business situation in the third quarter of the year to improve as the City’s economy recovers and local infections stabilise, the Census and Statistics Department reported.

The proportion of respondents who are optimistic about the business situation in the third quarter inched up to 17% from 16% in the preceding quarter; whilst those businesses that expect the worse dropped to 11% from 16% over the same period.

“Business sentiment among large enterprises improved further as the economy continued to recover amid stabilised local epidemic situation and improved external environment,” a government spokesman said.

“The improvement was more visible for the accommodation and food services, retail as well as professional and business services sectors. Hiring sentiment also revived slightly in overall terms.”

The survey found that significantly more respondents in the accommodation and food services are optimistic compared to those that do not expect an improvement; whilst more businesses in the construction sector and transportation, storage and courier services sector expect the business situation to worsen.

Moreover, businesses in the accommodation and food services and manufacturing sectors expect the volume of business or output to improve; whilst more enterprises in the transportation, storage, and courier services sector expect their volume of business to decrease, as compared to those expecting it to increase.

Meanwhile, respondents in most of the surveyed sectors expect their employment to remain broadly unchanged or increase on balance in the third quarter of 2021 as compared with the second quarter of the same year.

“Improving economic situation should be conducive to business sentiment in the period ahead, despite the uncertainty associated with the pandemic development,” the spokesman also said.

The government expects its e-consumption voucher scheme, as well as the vaccine rollout, to further support consumption-related sectors.