Enterprises in the Guangdong-Hong Kong-Macau Greater Bay Area are optimistic about their business prospects, according to the latest findings from the Standard Chartered GBA Business Confidence Index (GBAI).
The research, conducted jointly by Standard Chartered and the Hong Kong Trade Development Council (HKTDC), provides insights into the region’s economic prospects.
Based on the survey results for the second quarter of this year, the overall performance index for business activity remained largely unchanged at 54.1, compared to the 54.3 reported in the previous January-March period. The second-quarter figure is close to its highest level since the second quarter of 2021.
The GBAI expectations index rose to 54.8 in the second quarter from 54.0 previously, marking the first rise in five quarters.
“The figures remain comfortably above the 50 neutral mark, reflecting sustained expansionary momentum following a solid start to the year,” the research team wrote.
Analysed by industry categories, the retail and wholesale sector saw a quarter-on-quarter increase of 3.9 points for current performance and a rise of 2.6 points for expectations.
The financial services sector recorded a surge of 15.0 points for current performance and 10.7 points for expectations, while the professional services sector saw growth of 7.6 points and 12.3 points for current performance and expectations, respectively.
The IT sector appeared to take a hit from tariff concerns, with the category’s current performance sub-index plunging to 43.9 from 57.8 previously, and expectations falling sharply to 38.1 from 54.6 in the first quarter.
The research team noted that the May Labour Day holiday and an early start to the 618 online shopping festival in the mainland probably boosted household demand, allowing retail and wholesale to outperform manufacturing and trading, despite a stronger start to the year for manufacturing.
Additionally, the research team highlighted that the risk of overcapacity or macro concerns, such as an uncertain economic outlook, did not deter GBA companies from upgrading equipment and planning to make other business investments in the next 12 months
