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HONG KONG - Export index of China"s Hong Kong Special Administrative Region for the second quarter of 2018 (2Q18) climbed to a 29-quarter high, indicating positive sentiment among local exporters for the first time in 12 months.
Hong Kong Trade Development Council (HKTDC) announced on Wednesday that the HKTDC Export Index, made to reflect exporters" confidence, stood at 54.1 in 2Q18, up from 49.4 in 1Q18. The results suggest that Hong Kong exports are likely to sustain their growth momentum over the near term.
The index monitors the current export performance of Hong Kong traders and gauges their near-term prospects. Readings above 50 indicate positive sentiment, while readings below 50 indicate negative sentiment.
Among major sectors, the indices for electronics and machinery performed exceptionally well, reaching 55.2 and 54.9 respectively in 2Q18, the highest levels since early 2013. Toys continued its uptrend seen in the last two quarters, rising to 53.2. Clothing, while staying in contractionary territory, also showed signs of improvement in 2Q18 with a 17-quarter high reading of 43.6.
"Overall, Hong Kong exporters have shown a strong reversal in sentiment," HKTDC Director of Research Nicholas Kwan said, adding that "despite the mixed performances across sectors, exporters are generally positive about the outlook for major export markets."