Consumers in HK still pessimistic about the economy

But they are continuing to spend outside the city as a way to reduce overall expenses

- Magdalene Fung Hong Kong

Hong Kongers remain pessimistic about their economy in 2024 amid fears of higher inflation and job losses, but they are continuing to spend outside the city as a means of reducing their overall expenses, experts say.

Consumer confidence in Hong Kong fell 7.2 per cent to 88 points in the first three months of 2024 compared with the same period a year earlier, the City University of Hong Kong (CityU) found in its quarterly Chinese Consumer Confidence Index (CCCI) report released on April 8.

In particular, Hong Kongers' confidence in the city's economic development dropped 22.7 per cent from a year ago to 84.8 points.

The index measures consumer sentiment on a scale of 0 to 200; a score below 100 indicates a lack of confidence.

Compared with the previous quarter, however, overall consumer confidence was up slightly by 1.6 per cent, led largely by a 13.6 per cent rise in confidence in property purchases.

This came after Hong Kong scrapped all property curbs and eased mortgage rules in late February to boost the lacklustre real estate market that had seen home prices tumble to a seven-year low.

"There have been many unfavourable news reports about the Hong Kong economy over the past year, which has affected the respondents' mood and confidence," Dr Geoffrey Tso, the CCCI report's lead researcher and director of CityU's statistical consulting unit, told The Straits Times.

Hong Kong has since 2019 consistently scored lower on the index than the mainland, Macau and Taiwan, Dr Tso said.