Diffusion index down to 42.1 in February

Business receipts DI fell for logistics and retail trade.

The diffusion index (DI) on business receipts amongst small and medium enterprises (SMEs) fell from 43.1 in January to 42.1 in February, according to the Census and Statistics Department.

Sector-specific declines were recorded in logistics (DI dropped from 38.5 to 36.3) and retail trade (41.9 to 39.9). The DI for new orders in the import and export trade also edged down from 46.1 to 45.9.

The one-month-ahead DI for March showed improvement, with business receipts expected to rise to 45.8 and new orders to 47.3.

A government spokesperson noted that while business sentiment and employment conditions among SMEs weakened in February, expectations for March improved. The spokesperson added that external uncertainties remain a challenge, but factors such as the anticipated loosening of global financial conditions, policy support from Beijing, and the Hong Kong government's economic initiatives could provide stability.