Hong Kong exporters are upbeat over their business prospects, and are anticipating growth in sales and new orders.

According to the latest HKTDC Export Confidence Index released on Tuesday, the Expectation score was still in positive territory at 51.4 for the third quarter, but reflected a 2.9-point decline from the second quarter.

Local traders have a positive outlook for business on the Chinese mainland and in the Association of Southeast Asian Nations markets, with Expectation scores of 58.4 and 59.7 respectively.A reading above 50 reflects an optimistic outlook, while below 50 indicates a more pessimistic outlook.

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A total of 500 Hong Kong exporters from six major industry sectors, including clothing, electronics, jewelry, machinery, timepieces, and toys, were interviewed for the index, which is compiled to gauge local traders’ outlook on near-term export performance.

Two-thirds of exporters expect stable or higher profit margins, even though rising costs remain a major concern for surveyed exporters.

Irina Fan, director of HKTDC Research, said that the recent trade restrictions and higher tariffs have had little impact on exporters’ businesses.

“More specifically, about 60 percent report no impact and 39 percent say that, although the unfavorable factors do have a negative impact, it is mild or moderate. Only 1 percent of the exporters said that their businesses are negatively affected.”

HKTDC is sticking with its earlier forecast that Hong Kong’s exports would grow 9 to 11 percent this year.

According to the Census and Statistics Department, the value of total exports of goods from Hong Kong increased by 13.1 percent on a yearly basis to HK$390.4 billion ($50 billion) in July, while imports of goods rose by 9.9 percent year-on-year to HK$412.3 billion, amounting to a HK$21.8 billion trade deficit.

For the first seven months, the value of total exports of goods increased by 12.4 percent from the same period a year earlier. Imports of goods grew by 8 percent.

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“Now that the US Fed has cut the interest rate (on Sept 18), the US dollar has weakened in terms of the exchange rate. As the Hong Kong dollar is pegged to the greenback, the Hong Kong dollar has also weakened, thereby enhancing the competitiveness of Hong Kong exports,” said Billy Mak Sui-choi, associate professor in the Department of Accountancy, Economics and Finance at Hong Kong Baptist University’s School of Business

The positive forecast for Hong Kong’s exports can largely be explained by the growth in exports from the Chinese mainland, Southeast Asia and the Middle East, according to Alvis Kong, Deloitte China Strategy and Economic Advisory Partner.

“Even though the US and Europe are reducing business collaboration with Hong Kong, countries involved in the Belt and Road Initiative still regard Hong Kong as a transfer station to get in touch with the Chinese mainland,” Kong said.

“In the long term, exports will still support Hong Kong’s economic growth.”

Contact the writer at thor_wu@chinadailyhk.com