April sees optimistic SMEs, as sentiment rises to two-year high

The diffusion index on business receipts increased to 47.1, representing cautious optimism among small businesses.

Business sentiment of small and medium enterprises (SMEs) improved to a two-year high in April, but most operators still remain cautious, the Census and Statistics Department (C&SD) has reported.

The current diffusion index on business receipts amongst SMEs went up to 47.1 in April 2021, from 44 in the previous month. The outlook for the index on business receipts is expected to improve to 48.9 in the coming months.

“Business sentiment among SMEs improved to a two-year high in April, though remained cautious in overall terms,” a government spokesman said.

“The sub-index for retail trade increased notably over the preceding month and that for restaurants stayed in the expansionary zone. Meanwhile, those for other sectors saw mixed performance.”

Read also: SMEs in Hong Kong stayed “cautious” in March

The current DI on business receipts in retail trade climbed to 46.4 from 36.2; whilst import and export trades saw an increase to 47.7 from 44.6.

The current DI on new orders for the import and export trades increased to 47.9 from 46.4 in March 2021. The outlook DI on new orders in one month's time is 49.2.

“if the global economic recovery sustains and the local epidemic situation remains well-contained, business sentiment can hopefully see further improvement down the road.”

The spokesman also noted that participation in the vaccine programme and the measures under the 2021/22 budget will likely help improve business sentiments.