May SME business receipts index stays weak at 44.4

June outlook index stood at 47.2. 

Hong Kong’s small and medium-sized enterprises (SMEs) remained cautious in May amidst geopolitical tensions in the Middle East, with business receipts still in contraction.

The Census and Statistics Department said the current business receipts index for SMEs rose from 44 in April to 44.4 in May, but remained below the 50 mark that separates expansion from contraction. 

The one-month-ahead outlook index for June stood at 47.2.

Several sectors recorded higher business receipt indexes. The index for restaurants rose to 41.1 from 38.1, whilst logistics increased to 40.7 from 38.1. 

Retail trade also improved to 42.6 from 40.8.

For import and export trades, the current index on new orders slipped to 46.0 from 46.1 in the previous month. 

The one-month-ahead outlook index for new orders stood at 47.8.

A government spokesman said Hong Kong’s economic growth prospects should support local business sentiment, but the Middle East conflict remains a near-term source of uncertainty.

“To help SMEs navigate these volatile market conditions, the government has taken targeted measures and will continue to closely monitor the situation,” the spokesman added.