Consumers in Hong Kong are less optimistic.

Hong Kong’s consumer confidence index reported an eight-point decrease over the previous quarter, from 111 to 103 – the biggest confidence decline in the region, according to research house Nielsen.

Optimism level for the key index drivers – job prospects, state of personal finance and readiness to spend, all recorded a decline quarter. Consumers’ intention to spend for the next 12 months is decreased as a result, from 53 per cent to 47 per cent.

Discretionary spending intentions among Hong Kong consumers decreased across all categories measured, with the biggest declines for out-of-home entertainment (36 per cent) and holidays/vacations (23 per cent), which dropped six percentage points accordingly. Putting spare cash into savings is still the favourite choice for most Hong Kong consumers, with 70 per cent in this quarter, Nielsen found.

“Retail sales figures reported by the government showed a decline of 4.1 per cent in May over a year earlier, reflecting economic uncertainty is still an underlying concern,” said Eva Leung, MD, Nielsen Hong Kong and Macau.

“A slowdown in mainland visitors, believed to be related to tightened control, is likely affecting the sales decline. Consumers are more concerned about job security, which is reflected in a job outlook decline of nine percentage points in the latest Nielsen consumer confidence results.”