SME business sentiment improves slightly in July

Revenue index rise 1.2% to 42.1 in July.

The diffusion index (DI) demonstrating revenue for Small and Medium-sized Enterprises (SMEs) increased to 42.1 in July from 41.6 in June, said the Census and Statistics Department (C&SD) on Monday.

Business sentiment amongst SMEs and their outlook in one month's time both improved slightly in July, a government spokesperson said.

Meanwhile, the overall employment situation remained largely stable, he added.

DI in many sectors improved in July month on month, led by DI on real estate’s 4.5% rise to 46.2 and business services’ 2.9% add to 44.8, while DI on new orders for the import and export trades remained at 45.0.

The survey solicits feedback from a panel sample of about 600 SMEs each month, a reading below 50 indicates that the business condition is generally unfavorable.

Outlook on DI in SMEs revenue in August will be 45.5 with 47.0 on new orders, elevated uncertainties in the external environment would continue to affect the local business sentiment.