SME Leading Business Index up 3.2 points in Q4 2024

Four in five sub-indices recorded increases.

The Standard Chartered Hong Kong SME Leading Business Index went up 3.2 points to 45.7 in Q4 2024, returning to Q3 2023 levels, the Hong Kong Productivity Council (HKPC) reported.

Four out of five sub-indices increased, including “Profit Margin” (41.9, +6.8), “Global Economy” (36.2, +6.7), “Business Condition” (44.3, +4.9), and “Recruitment Sentiment” (50.6, +1.0).

Meanwhile, “Investment Sentiment” remained close to the neutral line (48.9, -0.1).

Per industry, nine of 11 experienced a rebound in growth, with “Accommodation and Food Services” (49.0, +9.4), “Real Estate” (44.2, +6.9), “Information and Communications” (53.0, +5.1), and “Transportation, Storage and Courier Services” (44.5, +5.1) recording the most significant increases.

On the flip side, “Professional and Business Services” (43.7, -2.3) and “Construction” (43.5, -1.5), recorded slight increases.

In addition, 50% of local SMEs expect the cost of raw materials to rise, dropping 7 percentage points (pp) quarter-on-quarter (QoQ).

In terms of overall investment sentiments, 93% of SMEs would maintain or increase investment in Q4, particularly in “IT Systems,” “Training Related to E-commerce or Digital Technology,” “Overall Staff Training,” “Research and Development,” “Facilities and Equipment,” and “Online Marketing Promotion.”