In this undated photo, workers stand atop shipping containers at the Kwai Tsing Container Terminal in Hong Kong. (DAVID PAUL MORRIS / BLOOMBERG)

Export confidence continued to rebound the first three months of this year, as the Hong Kong Trade Development Council Export Index rose for the fourth consecutive quarter, although the index remains in “contractionary territory”, officials said on Monday.

The HKTDC Export Index rose to 39.0 points in the first quarter of 2021, up 2.8 points compared with the preceding quarter.

All industries in the city saw an improvement in exporter sentiment, with the indexes for toys, jewelry and machinery businesses all climbing above 40. The jewelry and toys sectors jumped 9.2 and 8.8 points respectively, making the strongest comebacks.

Exporters also showed more confidence toward the United States market, with the index advancing 1.7 points to 46.1, following that of the Chinese mainland and of Japan, the HKTDC revealed on Monday.

Results also showed that exporters in the city were particularly concerned about the resurgence of the COVID-19 pandemic; softening global demand; and the trade tensions between China and the US — the world’s top two biggest economies.

All industries in the city saw an improvement in exporter sentiment, with the indexes for toys, jewelry and machinery businesses all climbing above 40. The jewelry and toys sectors jumped 9.2 and 8.8 points respectively, making the strongest comebacks

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The index is generated quarterly to gauge Hong Kong business confidence in near-tern export prospects by interviewing 500 local exporters from six major industries — machinery, electronics, jewelry, watches and clocks, toys and clothing.

The index indicated an optimistic or pessimistic outlook with 50 points as the dividing line, with a number of over 50 reflecting optimism, and less than 50 showing pessimism.

The continual recovery suggests a relatively positive trend that may push some industries to return to the pre-pandemic level, said Nicholas Kwan, HKTDC director of research. “As the impact of COVID-19 begins to diminish and business operations gradually return to normal, the Hong Kong economy is expected to regain the momentum for growth,” he added.

However, a more comprehensive industrial comeback wouldn’t take place until next year, Kwan said, citing the long-tern uncertainties.

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“The city’s export performance will be affected by several uncertainties such as whether there is a revival in consumer and business confidence, and whether the economic stimulus packages implemented in major economies are effective,” he said. “There’ll be a long way before the export return to pre- US-China trade war levels.”

The HKTDC also said that of the exporters surveyed, all of which are coping with challenges amid the pandemic-battered economy, nearly half had jumped on the e-commerce bandwagon by opening online sales channels with nearly 4 of 5 businesses having proprietary websites, applications or social commerce, while more than 60 percent are cooperating with third-party e-commerce platforms, and a smaller number working with online sourcing platforms and online exhibitions.

However, more than half of exporters in the e-commerce battlefield said they encountered difficulties with intense competition and ineffective digital marketing strategies.