Hong Kong Business Expected To Surge In Q2

by Mary Swire, Tax-News.com, Hong Kong

30 April 2007

The volume of business and output in all of Hong Kong's economic sectors is expected to surge in the second quarter, the territory's Census and Statistics Department's quarterly business tendency survey has suggested.

Manufacturing, construction, wholesale and retail, import and export trade, restaurants and hotels, transport, banks, financing and insurance, as well as real estate, business services and telecoms sectors all anticipate a brighter outlook in the second quarter, said the survey, which gathers views on short-term business performance from the senior management of about 550 prominent establishments in various sectors in Hong Kong.

Significantly more respondents from all surveyed sectors expect their business situation to be better in Q2 over Q1.

Respondents from all sectors expect an increase in their volume of business and output in Q2. Analysed by sector, significantly more respondents in the manufacturing; import and export trade; and banks, financing and insurance sectors expect their volume of business and output to increase.

Respondents from all sectors also expect employment to increase in Q2. Significantly more respondents in the real estate sector and the banks, financing and insurance sector expect the number of people they engage to rise, compared to those expecting it to fall.

Respondents from all sectors expect selling prices and service charges to rise. Restaurants and hotels in particular are expecting a rise in food and service charges.

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