Business firms expect worse Q3

About 19% of Hong Kong firms don’t expect their business situation in Q3 to be better than Q2.

The Census & Statistics Department’s just released Quarterly Business Tendency Survey for the third quarter also found out that this percentage is lower than the 23% who hoped for better business in the second quarter survey.

Overall, the prevalence of optimistic business expectations among respondents is lower for Q3 2012 when compared with the results of the Q2 2012 survey.

In the retail and import/export trade and wholesale sectors, fewer respondents expect their business situation to be better, as compared to those expecting it to be worse.

Respondents in all the surveyed sectors expect their employment to remain broadly unchanged or to increase on balance in Q3 2012 as compared with Q2 2012.

Respondents in almost all the surveyed sectors expect their selling prices/service charges to remain broadly the same or to go up on balance in Q3 2012 as compared with Q2 2012. In particular, over 40% of respondents in the construction sector expect their tender prices to go up.

More respondents in the transportation, storage and courier services sector, manufacturing, and financing and insurance expect their business situation to be better, as compared to those expecting it to be worse.

The spate of worrisome economic is leading analysts believe the government might accept a no growth scenario for Hong Kong this year. The government’s current growth estimate ranges from 1% to 3%.

Hong Kong’s economy grew 0.4% in the first quarter year-on-year, the slowest pace since the global financial crisis began in 2008. The government is due to announce second-quarter growth on August 10.