Diffusion index climbs to 42.3 in October

Thanks to easing financial conditions and initiative to boost the business environment.

More small and medium enterprises are seeing an increase in business receipts in October with the diffusion index (DI) rising to 42.3 from 41.6 in September, according to the Census and Statistics Department.

A government spokesperson attributed the improved sentiment to easing financial conditions, supportive policy measures for the Mainland economy, and initiatives to bolster Hong Kong’s business environment. However, the representative cautioned that global economic uncertainties and trade tensions could still exert downward pressure on business sentiment.

From the sectors analysed, DI increases were recorded amongst real estate (from 44.9 to 46.3) and retail trade (from 38.4 to 39.8).

The DI on new orders for the import and export trades also increased from 44.5 in September to 44.7 in October.