Business confidence hits 13% in Q1 amidst expectation of higher output volume

The battered retail sector is expecting better days with the start of the new financial year.

Business expectations for the year ahead are slightly more positive with the start of a new financial year as respondents expecting their business situation to improve (13%) is marginally higher than those expecting a downturn (11%) in 2018, according to the Quarterly Business Tendency survey released by the Census & Statistics Department. 

Respondents in the finance, insurance and retail sectors in particular are anticipating better business situations in Q1 thanks to projected higher levels of business output and employment opportunities.

More respondents in the accommodation and food services sector are also expecting their selling prices to go up amidst robust demand.

On the other hand, more respondents in the construction and manufacturing sector are on the lookout following expectations of worsening business situation as tender prices and output volume are projected to decline. 

The quarterly business tendency survey gathers views on short-term business performance from the senior management of more than 500 prominent establishments from various sectors in Hong Kong.