Results of monthly survey on business situation of small and medium-sized enterprises for July 2026
The Census and Statistics Department (C&SD) released today (August 11) the results of the Monthly Survey on Business Situation of Small and Medium-sized Enterprises (SMEs) for July 2026.
The Census and Statistics Department, Photo source: reference image
The current diffusion index (DI) on business receipts amongst SMEs decreased from 44.0 in June 2026 in the contractionary zone to 43.8 in July 2026, whereas the one-month's ahead (i.e. August 2026) outlook DI on business receipts was 46.8. Analysed by sector, the current DIs on business receipts for a number of surveyed sectors dropped in July 2026 as compared with previous month, particularly for the import and export trades (from 45.4 to 44.5) and retail trade (from 41.7 to 40.8).
The current DI on new orders for the import and export trades decreased from 46.4 in June 2026 to 45.0 in July 2026, whereas the outlook DI on new orders in one month's time (i.e. August 2026) was 47.1.
Hong Kong, Photo source: reference image
Commentary
A Government spokesman said that business sentiment among SMEs remained cautious in July, with the current and outlook diffusion indices on business receipts for SMEs edging down slightly. The overall employment situation also softened marginally. Persistent uncertainty over the developments in the Middle East led businesses to adopt a more guarded assessment of the near-term outlook.
Looking ahead, continued solid growth of the Hong Kong economy should provide some support to business confidence and business activity. Nevertheless, the evolving situation in the Middle East is still a main downside risk, as any further escalation could weigh on external demand, market confidence, operating costs, and investment decisions. The Government will remain vigilant and closely monitor the evolving external environment.
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 companies 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 companies 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 companies 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).
Hong Kong, Photo source: reference image
Immigration Department Youth Leaders Corps' Belt and Road summer exchange tours conclude
To deepen young people's understanding of national strategies and the international landscape, the Immigration Department Youth Leaders Corps (IDYL) organised a series of summer exchange tours under the theme of "IDYL Belt and Road Exploration Tours", including the Guangxi Tour to the Guangxi Zhuang Autonomous Region and the Singapore and Malaysia Tour to Singapore and Malaysia, engaging a total of 60 IDYL members as scheduled. Through a diverse range of activities, the tours aimed to provide a comprehensive introduction to the Belt and Road Initiative (B&RI) as well as the culture and development of the relevant countries or regions, enabling young people to tell good stories of Hong Kong from their perspectives.
Led by the Deputy Director of Immigration (Enforcement, Systems and Management), Mr Choi Chi-yuen, and Deputy Commissioner of the IDYL Advisory Committee Mr Chu Man-yin, members of the Guangxi Tour visited cities such as Nanning, Fangchenggang and Chongzuo between July 20 and 26 to conduct on-site studies of the country's efforts to drive forward the New Western Land-Sea Corridor, which was at the forefront of its collaboration with the Association of Southeast Asian Nations. They also went to visit the China-Vietnam border, namely the Dongzhong, Dongxing and Youyiguan control points, to gain an in-depth understanding of immigration operations and trade developments along the China-Vietnam border, thereby better understanding the country's strategic layout in regional connectivity.
In addition, tour members visited the Guangxi Silver Wing Power Technology Company Limited to learn about the country's development of high-tech industries, and conducted exchanges with local young people at the Nanning Vocational and Technical University. They experienced Zhuang culture and jointly explored the way of passing on traditions while pioneering the future.
The six-day, five-night Singapore and Malaysia Tour was also held from August 5 to 10. Travelling to various cities in Singapore and Malaysia, tour members visited Singapore's Changi Airport and Tuas Checkpoint to obtain insights into the air and land immigration control facilities and policies of the Singapore Immigration & Checkpoints Authority, and went to local enterprises to experience firsthand the economic opportunities brought by the B&RI.
During the journey, tour members also paid a visit to the Embassy of the People's Republic of China in Malaysia to understand overseas consular protection work and the country's pursuit of promoting the B&RI. They also went to the Xiamen University Malaysia to find out how the Chinese Mainland's higher education integrates into the B&RI, and exchanged views with local young people and overseas Chinese. The itinerary also included visits to landmarks such as the National Museum of Singapore, the Chan She Shu Yuen Clan Ancestral Hall and the Petronas Twin Towers, allowing tour members to immerse themselves in the local culture.
Both exchange tours under this year's IDYL Belt and Road Exploration Tours were partially funded by the Home and Youth Affairs Bureau and the Youth Development Commission. The IDYL will continue to organise exchange programmes of various themes to deepen young people's understanding of national affairs, facilitate their integration into the overall national development, and broaden their international horizons. Young people will be encouraged to capitalise on Hong Kong's unique advantage of having strong support from the motherland while being closely connected to the world, and proactively tell the world good stories of China and Hong Kong with their experiences and insights gained during the journeys.
Members of the IDYL Belt and Road Exploration Tours: Singapore and Malaysia Tour visit the Embassy of the People's Republic of China in Malaysia on August 10 to listen to a sharing on overseas consular protection work by the country's diplomats. Source: HKSAR Government Press Releases
Members of the IDYL Belt and Road Exploration Tours: Singapore and Malaysia Tour visit the Chan She Shu Yuen Clan Ancestral Hall in Kuala Lumpur, Malaysia, on August 9 to learn about the history of local overseas Chinese. Source: HKSAR Government Press Releases
Members of the IDYL Belt and Road Exploration Tours: Singapore and Malaysia Tour visit and hold exchanges at Xiamen University Malaysia to learn about local students' campus life, share Hong Kong's unique culture with local young people, and tell good stories of Hong Kong. Source: HKSAR Government Press Releases
Members of the IDYL Belt and Road Exploration Tours: Singapore and Malaysia Tour put on traditional Nyonya attires and taste handmade Nyonya pastries in Malacca, Malaysia, on August 7. Source: HKSAR Government Press Releases
The Commandant of the Immigration Service Institute of Training and Development, Ms Lam Huen-si (second row, sixth right), and Assistant Commissioner of the Immigration Department Youth Leaders Corps Advisory Committee Mr Fong Chun-kit (second row, fifth left) lead members of the IDYL Belt and Road Exploration Tours: Singapore and Malaysia Tour to Laifa's durian farm and frozen durian processing factory on August 6 to learn about how the Belt and Road Initiative promotes co-operation between Malaysian and China's companies to expand the sales market. Source: HKSAR Government Press Releases
Members of the IDYL Belt and Road Exploration Tours: Singapore and Malaysia Tour visit the filming and post-production facilities of Iskandar Malaysia Studios on August 6 to learn about how its film and television production gains more opportunities through the Belt and Road Initiative. Source: HKSAR Government Press Releases
Members of the IDYL Belt and Road Exploration Tours: Singapore and Malaysia Tour visit Tuas Checkpoint in Singapore on August 6 to obtain insights into how the land immigration control facilities and policies of the Immigration & Checkpoints Authority facilitate connectivity among the Belt and Road countries and in the international community. Source: HKSAR Government Press Releases
Members of the IDYL Belt and Road Exploration Tours: Guangxi Tour visit the Detian Transnational Waterfall on July 25 to enjoy the vistas of natural wonders along the China-Vietnam border. Source: HKSAR Government Press Releases
Members of the IDYL Belt and Road Exploration Tours: Guangxi Tour visit the Dongzhong control point on July 22 to gain an in-depth understanding of immigration control and trade development along the China-Vietnam border. Source: HKSAR Government Press Releases
Members of the IDYL Belt and Road Exploration Tours: Guangxi Tour visit the Guangxi Silver Wing Power Technology Company Limited on July 21 to learn about the country's development of high-tech industries. Source: HKSAR Government Press Releases
Members of the IDYL Belt and Road Exploration Tours: Guangxi Tour conduct exchanges with local young people and experience the traditional Zhuang bamboo dance at Nanning Vocational and Technical University on July 21. Source: HKSAR Government Press Releases
The Deputy Director of Immigration (Enforcement, Systems and Management), Mr Choi Chi-yuen (front row, ninth left), and Deputy Commissioner of the Immigration Department Youth Leaders Corps Advisory Committee Mr Chu Man-yin (front row, eighth left) lead members of the IDYL Belt and Road Exploration Tours: Guangxi Tour to Nanning Vocational and Technical University for exchanges on July 21. Source: HKSAR Government Press Releases
