Hong Kong SME Sentiment Weakens, Business Receipts and New Orders Decline. Business sentiment among small and medium-sized enterprises (SMEs) in Hong Kong weakened in June compared to the previous month, according to data from the city’s Census and Statistics Department released Wednesday. The diffusion index on business receipts for SMEs fell to 41.4 in June from 43 in May, indicating a contraction in business activity.
The outlook for July remains bleak, with the diffusion index for business receipts expected to stay in contractionary territory at 46.5. This continued decline in business sentiment reflects ongoing challenges faced by SMEs in Hong Kong, including geopolitical uncertainties and shifts in consumption habits.
In addition to the overall business receipts, the diffusion index on new orders for import and export also showed a decrease, narrowing to 44.1 in June from 45.2 in May. This decline underscores the difficulties SMEs are encountering in maintaining steady business operations amid fluctuating market conditions.
A government spokesman noted that geopolitical uncertainties and changes in consumption habits are likely to continue impacting businesses in the near term. These factors are contributing to a cautious outlook among SMEs, who are navigating a complex and unpredictable economic environment. Hong Kong SME Sentiment Weakens, Business Receipts and New Orders Decline.
The weakening business sentiment among Hong Kong’s SMEs highlights the need for strategic support and adaptive measures to help these enterprises manage the ongoing economic challenges. As SMEs play a crucial role in the local economy, their performance and resilience are vital to the overall economic health of Hong Kong.
