In September, Hong Kong's small- and medium-sized enterprises (SMEs) expressed continued caution regarding their business receipts, as revealed by a recent report from the city’s Census and Statistics Department (C&SD). The SME index for business receipts recorded a slight increase to 41.6 in September from 41.3 in August.
Despite this uptick, the figure remains significantly below the critical threshold of 50, which distinguishes favorable conditions from unfavorable ones. This monthly survey focuses specifically on enterprises in Hong Kong with 50 or fewer employees, providing insight into the sentiment of the local business environment. Moreover, the outlook for business receipts over the next month saw an improvement, rising to 47.0 in September, a notable increase from 45.4 the previous month.
This upward shift indicates a more optimistic sentiment among SMEs, suggesting that businesses are anticipating a slightly better economic environment in the near term. The index reflecting new orders in the import and export sectors also experienced a boost, climbing to 44.5 in September from 43.4 in August.
However, the projected new orders index for the upcoming month saw a slight decline, recording 46.1 down from 46.4. In a detailed statement, the C&SD pointed out that overall business sentiment among SMEs appeared to stabilize in September, with an observable improvement in their expectations for the business climate in the coming month.
Alongside these positive shifts, the overall employment landscape in Hong Kong also demonstrated signs of recovery during September. Contributing factors to this improved sentiment include the recent decisions by the US Federal Reserve to lower interest rates coupled with China's plans to implement macroeconomic stimulus measures.
These developments are anticipated to foster a more favorable business climate, enhancing sentiment within the SME sector. Every month, the SME survey gathers insights from a panel of 600 small businesses, ensuring comprehensive feedback that reflects the prevailing economic circumstances faced by local enterprises..