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HK business forecast better for Q4

(Xinhua)
Updated: 2009-10-24 10:00

A survey on Friday showed 30 percent of business owners in Hong Kong expect a profitable fourth quarter, the most optimism seen since the financial turmoil erupted in the third quarter of last year.

The quarterly business tendency survey by the Hong Kong government's Census and Statistics Department found 30 percent respondents expect their business situation to be better in the fourth quarter over the third, with 17 percent forecasting it to worsen.

The proportion of respondents expecting their business situation in the fourth quarter to be better than the preceding quarter grew to 30 percent, as compared with 11 percent and 20 percent in the second and third quarter.

The retail sector has the most favorable outlook, followed by the financing and insurance sector. However, 38 percent of respondents in the construction sector expect business to fall.

Consistent with the expectations on the overall business situation, respondents in most of the surveyed sectors expect an increase in volume of business or output in the fourth quarter. Significantly more respondents in the retail sector, and financing and insurance sector, expect their volume of business to increase, as against those expecting it to decrease.

Relatedreadings:  Hong Kong hitching a ride to recovery  HK V-shape recovery complete: DBS  Hong Kong economy pulls out of recession  HK economy contracts by 2.2% in Q2

Respondents in most surveyed sectors have a favorable employment outlook for the fourth quarter. Yet more respondents in the import-export trade, and the wholesale and information and communications sectors, expect employment to fall.

More respondents in the real estate, retail, accommodation and food services, and transportation, storage and courier services sectors expect their selling price or service charge to rise, than those expecting it to go down. More respondents in the construction sector expect their tender price to decline, than those expecting it to rise.