HK consumers less optimistic in in Economy, Income

Consumer confidence in Hong Kong has dipped over the last six months, according to the latest MasterCard Worldwide Index of Consumer Confidence, released today. Though consumers remain cautiously optimistic with an overall Index score of 69.9, However, they seem more confident in the Stock Market as it is the only indicator that increased slightly (77.6 vs. 74.1). Amongst the Hong Kong respondents, those under the age of 30 are more optimistic than their older counterparts (71.2 for those below 30 vs. 68.9 for those above 30). These results mark a dramatic reversal compared to six months ago when the consumer sentiment of those aged 30 and above was more positive than those who were younger (75.9 vs. 71.4).

Now in its 19th year, the MasterCard Worldwide Index of Consumer Confidence is the region’s most comprehensive and longest running consumer confidence survey.

The Index is based on a survey which measures consumer confidence on prevailing expectations in the market for the next six months based on five economic indicators: Economy, Employment, Stock Market, Regular Income and Quality of Life. The Index score is calculated with zero as the most pessimistic, 100 as most optimistic and 50 as neutral. The latest survey was conducted from 15 March to 27 April 2011 and involved 10,374 consumers from 14 markets1. Data collection was via internet surveys, personal, telephone and Computer Aided Telephone interviews, with the questionnaire translated to the local language wherever appropriate and necessary. The Index and its accompanying reports do not represent MasterCard financial performance.

“Local consumers are still wary in their outlook for the months ahead due to the uncertainties caused by issues such as rising commodity and property prices, natural disasters and political instability in other markets and ongoing financial uncertainty across the Eurozone. Nevertheless, it is encouraging to see that consumer perceptions across most of the indicators continue to be optimistic.” In Asia/Pacific, consumers are concerned at the slow pace of the global economic recovery with a dip in optimism recorded over the last six months (61.5 vs. 68.0). Ten out of the 14 Asia/Pacific markets, such as China, Hong Kong and Singapore, recorded an overall decline in consumer confidence. Japan and New Zealand, both still recovering from devastating earthquakes this year, were the least confident nations. Taiwan is one of only four markets that saw consumer sentiment moved upwards.

“Though Hong Kong records a decline in optimism, consumer attitudes remain positive. There is clearly a perception that the recovery from the financial crisis is not going as Consumer Confidence Wanes in Hong Kong: MasterCard Survey smoothly as people would like,” said Jeroen van Son, Head of Hong Kong and Macau, MasterCard Worldwide.

MasterCard also regularly releases Insights reports providing analysis of business dynamics, financial policies and regulatory activities in the Asia/Pacific, Middle East and Africa region. Over 80 Insights reports have been produced since 2004. MasterCard has also released a series of four books on Asian consumer insights, authored by Dr. Yuwa Hedrick-Wong, Global Economic Advisor for MasterCard Worldwide and published by John Wiley & Sons.