Hong Kong traders remain optimistic in Q3 amidst solid sales

The majority of the sub-indices showed growth for the quarter. 

Hong Kong traders remain optimistic in the third quarter amidst solid sales, according to the Hong Kong Trade Development Council (HKTDC) Export Confidence Index for Q3 2024.

Majority of the sub-indices showed growth as the Current Performance Index rose by 1 point to 52.6, reflecting strong sales, rising unit prices and expanding procurement activities. 

This was solidified by increases in relevant sub-indices such as the trade value rising to 56.2 and procurement increasing to 57.3. 

The Expectation Index also rose to 51.4 even after a 2.9-point dip. It was driven by an 8.5-point decline in the Trade Value Expectation Sub-Index (down to 51.7), with traders expecting unit prices to moderately increase. 

Although sales and new orders recorded a moderate 1.8-point drop, it stayed in expansionary territory at 55.7.

In terms of current performance, the sales and new orders across all key markets increased. As for the near-term, clothing exporters are most optimistic at 61.2, followed by toys (58.7), and jewellery (56.4).

Moreover, the index noted that costs remained the major challenge on exporter confidence in the third quarter even if the Current and Expectation Cost Sub-Index improved.

Regarding the impact of recent trade restrictions and higher tariffs on certain China-origin exports, 60% of respondents reported no impact whilst 39% expect a moderate downside. 

In addition, the survey also found that to mitigate risks, Hong Kong exporters will adopt more cautionary business strategies.