HONG KONG, March 17 (Xinhua) -- The Hong Kong Trade Development Council (HKTDC) said on Tuesday that the export index of Hong Kong in the first quarter of 2020 fell to 16, down further 2.8 points from the previous quarter.
The index highlights Hong Kong's current export outlook and its level reflects the positive or negative sentiment of exporters. The decrease indicated that local exporters have become more pessimistic about the short-term export outlook of Hong Kong across all industries and markets.
According to the HKTDC, close to 94 percent of the 500 Hong Kong exporters surveyed said the COVID-19 outbreak has adversely affected their companies in areas such as arranging product deliveries, supply of labor following the Chinese New Year holiday, business contacts with overseas buyers or suppliers, and supply of raw materials.
Meanwhile, consumer sentiment has also been negatively affected by COVID-19, with a weakening demand for luxury goods in particular. The survey showed that exporters are most bearish on jewellery and watches as the indices are 8 and 13.9 respectively. The indices of other industries, including machinery and electronics, are also well below the 50 watershed.
HKTDC Director of Research Nicholas Kwan said the COVID-19 pandemic has disrupted the global supply chain, leaving entire markets in a state of uncertainty, and may accelerate its transformation.
"Economic and business activity has been on the wane worldwide during the outbreak," he added.
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