Diffusion index climbs to 41.8 in July, indicating SME growth

The index, however, remained in contractionary territory. 

Fewer small and medium enterprises (SMEs) are seeing a decrease in business receipts in July compared to June. 

The increase in the diffusion index (DI) from 41.4 in June to 41.8 in July reflects the improvement.

From the major sectors analysed by the Census and Statistics Department  (CS&D), DI increases were recorded amongst business services (from 44.5 to 48.2) and import and export trades (from 42.9 to 45.1).

The current DI on new orders for the import and export trades also increased, rising from 44.1 in June to 44.8 in July.

A spokesperson for the government remarked that while uncertainties in the global economy might impact business sentiment, the central government's measures and sustained local economic growth should provide support.