, Hong Kong

SMEs sentiments improve despite staying cautious 

The diffusion index on business receipts inched up to 45.1 in June.

The business sentiment of small- and medium-sized enterprises (SMEs) improved in June despite being cautious amidst the continuing pandemic. 

The current diffusion index (DI), as reported by the Census and Statistics Department,  inched up to 45.1 in June from 44.3 in May. 

The department’s outlook on the following month is 49.5. 

Readings of above 50 indicate that business condition is generally favourable; whilst below 50 indicate otherwise.

“The sub-indices for many sectors increased over the preceding month and that for the restaurant sector stayed in the expansionary zone.”

The current DIs on business receipts for the majority of the surveyed sectors rose by varying degrees in June, compared with the previous month.

In particular, the wholesale trade rose to 48.6 from 37.8 and logistics to 44.3 from 38.2.

The current DI on new orders for the import and export trades dropped to 44.7 in June from 46.6 in May; whilst the outlook DI on new orders in the month ahead is 48.2.

The spokesman noted business sentiment amongst SMEs continues to hinge on the economic outlook as well as the COVID-19-related developments across the globe. 

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