Consumer confidence index drops in Greater China region
The overall consumer confidence index in the 2nd quarter of the year has dropped in the Greater China region compared to the previous quarter, according to a recent survey conducted by the Department of Management Sciences at City University of Hong Kong (CityU).
The 2nd quarter results of the Chinese Consumer Confidence Index for 2012 revealed that overall consumer confidence in Hong Kong is 77.5, a decline of 4% on the previous quarter, reversing an upward trend seen in the 4th quarter of 2011 and the 1st quarter of this year.
The Chinese Consumer Confidence Index uses a scale of 0 (representing no confidence) to 200 (complete confidence). Scores below 100 suggest people lack confidence, while scores above 100 reflect relative confidence.
The results show that Hong Kong consumers lack confidence in housing sales and consumer prices; they have low confidence in stock investment and economic development; and they are neutral towards employment and living standards. (See table 1)
The highest confidence rating, 87.2, was achieved by mainland China, while Macau placed second (84.9) followed by Hong Kong (77.5) and Taiwan (73.7). These scores mirror similar positions established in the previous three quarters.
The Chinese Consumer Confidence Index was launched in the 1st quarter of 2009. The overall consumer confidence score is an integrated index measuring consumer sentiment towards economic development, employment, consumer prices, living standards, housing sales and stock investment. It reflects consumer perceptions about the current and expected social and economic climate in mainland China, Hong Kong, Macau and Taiwan.
The index is compiled by five universities in four places in the Greater China region. CityU is responsible for the research in Hong Kong. The 2nd quarter survey for 2012 was conducted from 18–24 June with 1,017 residents aged 18 or above who live in the territory most of the time.
Table 1: The Hong Kong Consumer Confidence Indexes
Categories | 3rd quarter 2011 | 4th quarter 2011 | 1st quarter 2012 | 2nd quarter 2012 |
Economic development | 84.3 | 85.4 | 89.8 | 86.0 |
Employment | 94.1 | 94.3 | 98.9 | 96.5 |
Consumer prices | 53.4 | 57.4 | 57.1 | 56.6 |
Living standards | 99.4 | 104.2 | 100.9 | 102.7 |
Housing sales | 60.9 | 63.8 | 56.9 | 49.2 |
Stock investment | 77.2 | 70.5 | 80.4 | 74.1 |
Overall CCI | 78.2 | 79.3 | 80.7 | 77.5 |