Macau economy remains stable but faces uneven growth, says association
Tourism and gaming strong while housing and consumer confidence stay weak.
Key points:
– Macau Economic Association index at 5.8 in June and 6.0 in July, classed as stable
– Gaming revenue above MOP 21bn (US$2.6bn) for both months, daily average over MOP 7bn
– Property prices and consumer confidence continue to lag behind
Macau’s economy showed signs of stability in June and July, with the overall economic climate index holding at 5.8 and 6.0 respectively, according to the Macau Economic Association, Macao Daily reported. The association forecast the index will remain between 5.9 and 6.0 from August to October, reflecting steady but uneven growth.
Tourism and gaming continued to support the economy. Visitor arrivals in June averaged 96,400 per day, only slightly down from May, while hotel and apartment occupancy climbed 5.6% to 88.4%, both rated as “overheated” levels. Gaming gross revenue exceeded MOP 21bn in both June and July, with daily averages of MOP 702m and MOP 714m, keeping the sector in stable territory. Stronger gaming results lifted share prices of the six concessionaires from “sluggish” to “weak” levels in July.
Despite robust tourism, underlying consumer demand remains fragile. Mainland China’s consumer confidence index stayed weak in June, while Macau’s residential property price index fell to 196.1, slipping below 200 for the first time in years. The household loan-to-deposit ratio edged up slightly to 50.1% but remained at a near-decade low, suggesting funds are not flowing effectively into the real economy.
Good to know: Broad money supply (M2) rose 9.8% year-on-year in June to MOP 824.8bn, setting another record high
Analysts noted that while non-gaming expenditure increased 4.6% year-on-year to MOP 18.25bn in the second quarter, per capita non-gaming spending fell 12.3% to MOP 1,950. This imbalance, coupled with subdued property prices and cautious investor sentiment, highlights the challenges facing Macau’s economic transition despite positive momentum from tourism and gaming.
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