Hongkongers are more confident than ever.
The ANZ-Roy Morgan Hong Kong Consumer Confidence Index just released shows a record high of 137.6 in July.
In terms of personal finances, 40.3 per cent (up 2ppts) of respondents said their families are ‘better off’ financially than this time last year, a new record high for this indicator, compared to 9.4 per cent (up 1.5ppts) that said their families are ‘worse off’ financially.
And 43.5 per cent of respondents expect their families will be ‘better off’ financially this time next year, compared to only eight per cent who expect their families to be ‘worse off’.
A majority of Hongkongers (57 per cent) expect ‘good times’ economically over the next 12 months, compared to just 11.7 per cent who expect ‘bad times’.
In addition, 59.1 per cent of respondents expect Hong Kong will have ‘good times’ economically during the next five years – also a record high – and just 10.9 per cent expect ‘bad times’, the lowest level ever recorded for this indicator.
For retailers, there is further good news: 35.2 per cent (up 1.9ppts) of respondents say now is a ‘good time to buy’ major household items in Hong Kong while just 7.1 per cent say now is a ‘bad time.
ANZ economist Louis Lam said he believes retailer sentiment held up in July because of the Chinese government’s efforts to rescue the stock market and positive developments in Greece.
“Interestingly, the rejection of political reform proposal at the Legislative Council did not have negative impact on household confidence.”
That said, the changing spending pattern of tourists will continue to weigh on retail sales, said Lam.
“The poor retail outlook will add downward pressure on rental rate of ground-level outlets.”