10th July 2024 – (Hong Kong) The Census and Statistics Department (C&SD) has released the results of the Monthly Survey on Business Situation of Small and Medium-sized Enterprises (SMEs) for June 2024. The survey findings indicate a further decline in overall business sentiment among SMEs during the month.
According to the survey, the current diffusion index (DI) on business receipts for SMEs dipped from 43.0 in May 2024 (in the contractionary zone) to 41.4 in June 2024. However, the outlook DI on business receipts for July 2024 stood at 46.5. Analyzing the data by sector, the current DIs on business receipts showed a decline for most surveyed sectors in June 2024 compared to the previous month, particularly in the restaurants sector (from 39.1 to 33.3) and retail trade sector (from 42.9 to 39.9).
In terms of new orders, the current DI for the import and export trades dropped from 45.2 in May 2024 to 44.1 in June 2024. However, the outlook DI on new orders for July 2024 was 48.7.
A Government spokesman acknowledged the softening of business sentiment among SMEs in June. The overall expectations for the business situation in the coming month were slightly weaker, although some sectors expressed anticipation of relative improvement. The spokesman also noted that the employment situation remained generally stable.
While geopolitical tensions and changes in consumer behaviour of both visitors and residents present challenges in the near term, the Government remains optimistic. They believe that the various measures introduced by the Central Government, coupled with the continued growth of the local economy, will provide support. The Government will closely monitor the situation and its impact on SMEs.
The Monthly Survey on Business Situation of Small and Medium-sized Enterprises aims to provide up-to-date insights into the short-term business situation faced by SMEs. The survey covers establishments with fewer than 50 employees, excluding seasonal fluctuations. The diffusion indices derived from the survey help gauge the overall business conditions, with a reading above 50 indicating favorability and below 50 indicating the opposite. For a comprehensive analysis of prominent establishments’ business prospects in Hong Kong, users can refer to the “Report on Quarterly Business Tendency Survey” published by the C&SD.
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