In December, Hong Kong's small and medium-sized enterprises (SMEs) experienced a modest recovery in business sentiment, following a downturn in November, as reported by the Census and Statistics Department's latest monthly survey. The diffusion index (DI) measuring business receipts for December climbed to 43.9, an increase from 41.9 in November, yet still falling short of the key expansion threshold of 50.
The outlook DI for January 2025 also saw an uptick, rising to 47.0 from the previous month’s 46.6. Notably, several key sectors exhibited growth in December. The import/export trades improved from a DI of 43.1 to 45.7, retail sales rose from 37.7 to 40.2, and business services advanced from 45.9 to 48.4.
The import/export sector also reported an increase in new orders, which reached a DI of 46.5 for December, reflecting a positive one-month outlook of 48, up from 47.4 in November. In contrast, November had seen a generalized decline in the DI across various sectors. Business services witnessed a drop from 50 to 45.9, retail diminished from 39.8 to 37.7, and restaurants fell from 37.4 to 34.9.
A spokesperson from the government noted an overall improvement in business sentiment among SMEs for December, highlighting advancements across the majority of sectors. The spokesperson attributed this optimistic outlook to measures implemented by the Central Government aimed at enhancing the Mainland economy and boosting Hong Kong, in conjunction with local initiatives.
Nonetheless, the spokesperson cautioned that increasing global uncertainties, especially the intensifying trade tensions, could exert continuing pressure on the business climate..