SME business outlook improves slightly in May

The outlook DI for June is 45.4.

Business sentiment amongst small and medium-sized enterprises (SMEs) showed slight improvement in May, as per the Census and Statistics Department (C&SD).

The current diffusion index (DI) on business receipts rose from 41.2 in April to 42.1 in May, indicating a slower pace of contraction.

The outlook DI for June is 45.4. Whilst still below the neutral level of 50, the increase points to improving sentiment.

The import and export trade sector saw its DI rise from 40.2 to 41.9, whilst the wholesale sector increased from 40.0 to 41.5.

The DI for new orders in the import and export sector also rose, from 42.0 in April to 44.0 in May. The outlook DI for new orders in June is 45.8.

A government spokesperson attributed the modest gains to easing global trade tensions and a slightly improved employment situation.

However, they warned that external uncertainties may continue to affect business confidence.