Current diffusion index on business receipts amongst SMEs decreased from 46.3 in June 2022

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9th August 2022 – (Hong Kong)  The Census and Statistics Department (C&SD) released today the results of the Monthly Survey on Business Situation of Small and Medium-sized Enterprises (SMEs) for July 2022.

The current diffusion index (DI) on business receipts amongst SMEs decreased from 46.3 in June 2022 in the contractionary zone to 43.4 in July 2022, whereas the one-month’s ahead (i.e. August 2022) outlook DI on business receipts was 48.0. Analysed by sector, the current DIs on business receipts for majority of the surveyed sectors dropped by varying degrees in July 2022 as compared with previous month, particularly for the real estate (from 48.2 to 42.5) and import and export trades (from 46.3 to 41.1).

 The current DI on new orders for the import and export trades decreased from 47.4 in June 2022 to 43.1 in July 2022, whereas the outlook DI on new orders in one month’s time (i.e. August 2022) was 46.9.

A Government spokesman said that overall business sentiment among SMEs eased further in July amid the deteriorating external environment and the increase in local COVID-19 infection cases. Softening was seen in most surveyed sectors, in particular the real estate and import and export trades sectors. Expectations on the business situation in the following month dipped into the contractionary zone. Overall employment sentiment also showed some softening.

 The spokesman added that worsening global economic prospects and the stepping up of monetary policy tightening by major central banks would continue to put pressure on business sentiment, especially the externally-oriented sectors. Yet, Phase II of the Consumption Voucher Scheme should render support to the consumption-related sectors, though their business situation would also be dependent on the local epidemic development and financial conditions. It remains crucial for the community to continue to work in unison with the Government to keep the local epidemic under control.

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