Businesses sustain optimism in July: C&SD
This is driven by the “vibrant” external demand and stabilised COVID-19 situation in Hong Kong.
The current diffusion index (DI) on business receipts amongst small and medium enterprises rose to 46.6 in July from 45.1 in the previous month.
“Business sentiment among SMEs continued to improve in July amidst vibrant external demand and the stabilised local epidemic situation,” a government spokesman said.
“The expected business situation in one month's time likewise saw a notable improvement, particularly so in the retail trade, logistics and restaurants sectors.”
The Census and Statistics Department reported the outlook DI on business receipts in the month ahead stood at 52.
Analysed by sector, the current DIs on business receipts for many surveyed sectors rose by varying degrees in July 2021 as compared with the previous month.
In particular, logistics increased to 48.6 from 44.3, whilst import and export trades climbed to 47.4 from 43.7.
The current DI on new orders for the import and export trades increased from 44.7 in June 2021 to 47.9 in July 2021, whereas the outlook DI on new orders in one month's time (i.e. August 2021) was 49.0.
“The Consumption Voucher Scheme would help stimulate consumption sentiment and lend support to consumption-related sectors,” the spokesman also said.
“However, the more infectious Delta variant has been raging around the world of late, adding uncertainties over the global economic outlook.”