GBA business confidence shows improvement
Business confidence is showing signs of improvement in the third quarter in the Guangdong-Hong Kong-Macau Greater Bay Area (GBA), according to a Standard Chartered Bank report.
Based on its quarterly surveys of over 1,000 companies in the area, the bank’s GBA Business Confidence Index’s “current performance” index for business activity rose to 42.4 in the July-to-September period from 37.0 in the second quarter, reflecting easing contractionary pressure.
Even more encouraging is the larger jump in the corresponding “expectations” index, to 56.2 from 47.0, reflecting a swing back to expansionary territory in the last three months of the year.
A detailed breakdown shows that the recovery is becoming more broad-based. Manufacturing and technology sectors are leading the way, with a likelihood of the services sector catching up.
By city, Hong Kong respondents remain the most pessimistic.
Respondents also expect an acceleration in yuan internationalization in the coming year.