SME’s diffusion index decreases in April

The diffusion index for most surveyed sectors dropped during the month.

The diffusion index (DI) on business receipts amongst small and medium-sized enterprises decreased month-on-month in April to 41.2, according to the Census and Statistics Department.

The current DIs for most surveyed sectors dropped in April, particularly for the import and export trades (from 45.1 to 40.2) and business services (from 48.4 to 45.3).

New orders for the import and export trades also decreased to 42.0.

A government spokesman said that business sentiment amongst SMEs and their outlook both weakened in April, as the headwinds and uncertainties in the external environment increased sharply due to US tariffs.

“Looking ahead, whilst trade tensions have eased, the uncertainty of US trade policy will still affect the economic outlook and business sentiment,” the spokesman added.