SME business sentiment rises in February

Current diffusion index rose to 43.9.

Current diffusion index (DI) on business receipts amongst small and medium enterprises (SMEs) increased to 43.9 this February in comparison to 43.3 last January.

Data from the Census and Statistics Department (C&SD) revealed that the current DIs on business receipts rose particularly for the import and export trades (from 42.6 to 43.8) and business services (from 48.4 to 49.2).

The current DI on new orders for the import and export trades grew from 43.2 in January 2024 to 43.8 in February 2024.

The outlook DI on business receipts for March is 46.6, whereas outlook DI on new orders is at 46.2

A government spokesman said the overall business sentiment among SMEs and their expectations on the business situation showed some improvement in February, and the overall employment situation remained stable.

They added that though business sentiment in the near term may dampen due to the complicated external environment, SMEs can expect support alongside continued economic growth and the probable easing of financial conditions later in the year. 

C&SD’s monthly survey on the business situation of Hong Kong’s SMEs provides a quick reference on assessing the short term business situations faced by SMEs, gathering insights from about 600 SMEs each month.