SME business optimism improves in October 

But, next month’s expectations are more cautious.

The business sentiment of Small and Medium-sized Enterprises (SMEs) improved in October, the Census and Statistics Department (C&SD) reported. 

The currency diffusion index (DI) on business receipts among SMEs rose to 45.5 in October from 43 in September. 

The C&SD also noted that the one-month’s ahead outlook DI on business receipts was 47.4. 

“Overall business sentiment among SMEs saw some improvement in October, with the current diffusion indices for most surveyed sectors recording increases,” a government spokesman said. 

“The overall employment situation was broadly stable. However, the expected business situation in one month's time turned more cautious.”

Read more: Situation of SMEs improves but remains unfavourable

Analysed by sector, the current DIs on business receipts, despite below the 50-mark, rose in October 2022 as compared with the previous month for many surveyed sectors, particularly for the retail trade (from 40.4 to 45.1), wholesale trade (from 40.9 to 43.8) and restaurants (from 44.9 to 47.6).

The current DI on new orders for the import and export trades increased from 44.4 in September 2022 to 47.2 in October 2022, whereas the outlook DI on new orders in one month's time (i.e. November 2022) was 46.3.