Results of monthly survey on business situation of small and medium-sized enterprises for June 2023
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The current diffusion index (DI) on business receipts amongst SMEs decreased from 47.2 in May 2023 in the contractionary zone to 44.4 in June 2023, whereas the one-month's ahead (i.e. July 2023) outlook DI on business receipts was 48.6. Analysed by sector, the current DIs on business receipts for many surveyed sectors dropped by varying degrees in June 2023 as compared with previous month, particularly for the real estate (from 50.0 to 43.9), wholesale trade (from 50.0 to 45.7), and import and export trades (from 48.0 to 44.6).
The current DI on new orders for the import and export trades decreased from 48.0 in May 2023 to 46.3 in June 2023, whereas the outlook DI on new orders in one month's time (i.e. July 2023) was 47.7.
Commentary
A Government spokesman said that overall business sentiment among SMEs eased further in June. Nonetheless, expectations on the business situation in one month's time held up relatively better. The overall employment situation showed some improvement.
Looking forward, the spokesman said that business sentiment will continue to be affected by the weak external environment and further tightening of monetary policy in the advanced economies, but the local economic recovery, the upcoming disbursement of the second instalment of consumption vouchers, and other measures introduced by the Government to boost the recovery momentum should render support. The Government will monitor the situation closely.
Further information
The Monthly Survey on Business Situation of Small and Medium-sized Enterprises aims to provide a quick reference, with minimum time lag, for assessing the short-term business situation faced by SMEs. SMEs covered in this survey refer to establishments with fewer than 50 persons engaged. Respondents were asked to exclude seasonal fluctuations in reporting their views. Based on the views collected from the survey, a set of diffusion indices (including current and outlook diffusion indices) is compiled. A reading above 50 indicates that the business condition is generally favourable, whereas that below 50 indicates otherwise. As for statistics on the business prospects of prominent establishments in Hong Kong, users may refer to the publication entitled "Report on Quarterly Business Tendency Survey" released by the C&SD.
The results of the survey should be interpreted with care. The survey solicits feedback from a panel sample of about 600 SMEs each month and the survey findings are thus subject to sample size constraint. Views collected from the survey refer only to those of respondents on their own establishments rather than those on the respective sectors they are engaged in. Besides, in this type of opinion survey on expected business situation, the views collected in the survey are affected by the events in the community occurring around the time of enumeration, and it is difficult to establish precisely the extent to which respondents' perception of the business situation accords with the underlying trends. For this survey, main bulk of the data were collected around the last week of the reference month.
More detailed statistics are given in the "Report on Monthly Survey on the Business Situation of Small and Medium-sized Enterprises". Users can browse and download the publication at the website of the C&SD (www.censtatd.gov.hk/en/EIndexbySubject.html?pcode=B1080015&scode=300).
Users who have enquiries about the survey results may contact Industrial Production Statistics Section of the C&SD (Tel: 3903 7246; email: sme-survey@censtatd.gov.hk).
Ends/Tuesday, July 11, 2023
Issued at HKT 16:30
Issued at HKT 16:30
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