Consumer confidence among Hong Kong residents hit a three-year high last quarter, pointing to a possible rebound in domestic consumption, according to a recent survey.

The Index of Consumer Confidence jumped by 26 points quarter-by-quarter to 96.7 and set a high since the second quarter of 2000, showed the survey conducted by Kwan Cheuk-chiu, associate professor of the Department of Economics of the Chinese University of Hong Kong.

The improved confidence in economic prospects can be attributed to the improving stock market, property market, labour market, relaxed visa requirements on mainland residents for Hong Kong-tours, and the mainland-Hong Kong Closer Economic Partnership Arrangement.

Eight per cent of the 504 respondents in the survey said the financial situation of their families improved, up by five percentage points from the figure for the second quarter. Three percentage points more, or 36 per cent of the respondents, said it was a good time for buying consumer durables.

Ninety per cent said the one-year outlook for their financial situations would improve, up eight percentage points.

On the business environment of Hong Kong next year, 29 per cent said it would be positive, up 15 percentage points.

Thirty-five per cent, or 20 percentage points more, expected the unemployment situation to improve next year.

If the external and local economy continues to improve, Kwan said, domestic consumption should stage a distinctive rebound in the coming few months, which will speed up Hong Kong's economic recovery.

(HK Edition 10/08/2003 page7)