Hong Kong SME sentiment edges higher in September but remains weak

Despite the improvement, the reading remains below the neutral 50 mark.

The business outlook amongst small and medium enterprises (SMEs) in Hong Kong improved marginally in September 2025, though overall conditions remained in contraction, according to the latest Monthly Survey on Business Situation of SMEs released by the Census and Statistics Department (C&SD).

The current diffusion index (DI) for overall business receipts rose to 43.8 in September, up from 42.3 in August.

Despite the improvement, the reading remains below the neutral 50 mark, indicating that more SMEs reported a decline in business receipts than those reporting an increase in business receipts. The outlook DI for October also remained contractionary at 47.2.

All surveyed sectors reported month-on-month improvements. The real estate sector saw the largest gain, rising from 43.9 to 47.1. Retail trade improved to 42.8 (from 41.1), and logistics rose to 42.2 (from 40.5).

The import and export trades also saw a rebound in new orders. The current DI increased to 46.5 from 44.2 in August, whilst the outlook for October climbed to 47.3.

In a statement accompanying the release, the Government noted that SME sentiment and the short-term business outlook had "improved further" in September. Employment across the SME sector was reported as stable.

The commentary cited a resilient local economy and ongoing growth in Asia, particularly the Mainland, as supporting factors, though it also acknowledged continued external uncertainties. Authorities said they will monitor the situation closely.