The confidence level of Hong Kong exporters has improved over the past few months, according to a survey released Tuesday by the Hong Kong Trade Development Council (HKTDC).

The HKTDC Export Index increased to 55.1 in the first quarter. This marks the first time in two years that the Index has been in expansionary territory for two straight quarters and responds, in part, to stronger demand from overseas buyers.

A reading above 50 indicates optimism among respondents. The Index is an indicator designed to monitor the current export performance of Hong Kong traders and gauge their near-term prospects.

Among industries, electronics and timepiece exporters were the most optimistic, expecting more purchases of raw materials or goods for further exports. The index for jewelry, however, slipped to 36.8, indicating that jewelry exports are unlikely to improve in the near term.

While the sub-indices for the United States, the European Union and Japan stayed below 50, export confidence improved significantly for the Chinese mainland, with the sub-index increasing to 55.6.

"This is the third quarter in a row that the mainland sub-index has stayed in expansionary territory, indicating that local exporters are more confident of the mainland market," Edward Leung, the HKTDC's Chief Economist said.