This year, consumer confidence in Hong Kong has slipped to the lowest level in two years, Nielsen reported Thursday. Hong Kong's Nielsen Confidence Index has fallen to 109 in 2008 -- from 118 in 2007.
That trend is forcing Hong Kong residents to change their lifestyles. According to the most recent Nielsen Consumer Confidence study, 53% of people in Hong Kong are less willing to spend in the next 12 months -- up from 39% in 2007. Two-thirds of Hong Kong residents also reported they are saving discretionary income, rather than spending it.
In general, Hong Kong residents reported they are cutting non-essential purchases and seeking out less-expensive alternatives when shopping for staple items.
In the last three months, spending on clothing, shoes, and accessories per capita dropped by 26% in Hong Kong, according to Nielsen. Per capita spending by Hong Kong residents on luxury items declined by 33% during the same time period.
Meanwhile, at grocery stores, Hong Kong residents are increasingly opting for less-expensive frozen meat and frozen food -- rather than fresh foods, according to Nielsen. Many have also reduced their spending on non-essential beverages, snacks, and confectionery items.
View the full press release.
Read The Standard's coverage of Nielsen's findings.