More firms expect business conditions to worsen than improve in Q3

'Financing and insurance' was the only sector that expected improvement. 

About 14% of surveyed businesses in Hong Kong expect their situation to worsen in the third quarter of the year, compared with 10% anticipating an improvement.

The share expecting weaker conditions fell from 16% in the second-quarter survey, according to the Census and Statistics Department (C&SD). 

Meanwhile, the proportion forecasting an improvement slipped from 11% to 10%.

A government spokesman said the overall near-term outlook amongst large enterprises improved slightly as the proportion expecting deterioration decreased. Renewed tensions in the Middle East remained a risk to business sentiment.

Transportation, storage and courier services, real estate, and professional and business services recorded negative expectations on balance. Financing and insurance was the only sector where more expected conditions to improve.

C&SD said most sectors expect business volumes or output to decline or remain broadly unchanged. 

Transportation, storage and courier services recorded the weakest outlook for business volume, whilst manufacturers were more likely to expect production to increase than decrease.

On selling prices and service charges, the construction sector saw significantly more respondents expect tender prices to decline during the quarter.