SME Business Sentiment Improves in August, Reaching Three-Month High, Despite Ongoing External Challenges

Results of monthly survey on business situation of small and medium-sized enterprises for August 2026

The Census and Statistics Department (C&SD) released today (September 9) the results of the Monthly Survey on Business Situation of Small and Medium-sized Enterprises (SMEs) for August 2026.

The Census and Statistics Department, Photo source: reference image

The current diffusion index (DI) on business receipts amongst SMEs increased from 43.8 in July 2026 in the contractionary zone to 44.1 in August 2026, whereas the one-month’s ahead (i.e. September 2026) outlook DI on business receipts was 47.6. Analysed by sector, the current DIs on business receipts amongst SMEs for some surveyed sectors rose in August 2026 as compared with previous month, particularly for the restaurants (from 40.2 to 44.0) and real estate (from 45.2 to 48.5).

The current DI on new orders for the import and export trades decreased from 45.0 in July 2026 to 44.8 in August 2026, whereas the outlook DI on new orders in one month’s time (i.e. September 2026) was 47.4.

Hong Kong, Photo source: reference image

Commentary

A Government spokesman said that business sentiment among SMEs improved in August. The current diffusion index on business receipts reached a three-month high, and the outlook index rose to a six-month high. While the real estate sector outlook index remained above the 50-point threshold in the expansionary zone, the restaurants and retail trade sectors recorded the largest improvements in business outlook among various sectors. Meanwhile, the overall employment situation was largely steady.

Looking ahead, solid growth in the Hong Kong economy will provide continued support to business confidence. However, external headwinds are still evolving. The Government will continue to closely monitor the situation.

Photo source: reference image

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.

Hong Kong, Photo source: reference image

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).

LegCo expresses deep condolences on passing of former Vice-Chairman of CPPCC National Committee and first Chief Executive of HKSAR, Mr Tung Chee Hwa

The following is issued on behalf of the Legislative Council Secretariat:

All Members of the Legislative Council (LegCo) expressed their deep condolences today (September 9) on the passing of former Vice-Chairman of the National Committee of the Chinese People's Political Consultative Conference and the first- and second-term Chief Executive of the Hong Kong Special Administrative Region (HKSAR), Mr Tung Chee Hwa, and extended their sincere sympathies to his family.

The Legislative Council, Photo by Bastille Post

The President of the LegCo, Dr Starry Lee, said that Mr Tung had a lifelong dedication to loving the country and Hong Kong, displaying a deep affection for the nation and home, as well as a strong sense of responsibility. He dedicated himself to leading the smooth establishment of the HKSAR, steadfastly implementing the principles of "one country, two systems", "Hong Kong people administering Hong Kong" and a high degree of autonomy, while telling the good stories of Hong Kong to the international community. He wrote a groundbreaking chapter for Hong Kong's smooth transition and glorious return to the motherland at a critical juncture, standing out as an outstanding contributor to "one country, two systems".

Dr Lee pointed out that Mr Tung always kept the livelihood of the public close to his heart and put people first. During his tenure, he led his team to respond imperturbably to unprecedented and severe tests, including the Asian financial crisis and the Severe Acute Respiratory Syndrome (SARS) epidemic. Taking the well-being of Hong Kong and the public as his top priority, he was committed to resolving deep-seated problems and social conflicts in Hong Kong. At the same time, with great foresight, he devoted himself to strengthening the economic and trade ties as well as synergized development between Hong Kong and the Mainland, and driving policy initiatives in innovation and technology, education, housing and elderly care, laying a solid foundation for Hong Kong's long-term development.

Dr Lee praised Mr Tung for his benevolence and kindness, and expressed her appreciation for his effort in winning people over by virtue. His selfless contributions and remarkable achievements to Hong Kong's prosperity and stability and national development are invaluable. His noble character will live forever in the hearts of the public and serve as an exemplar for future generations. All LegCo Members will surely uphold Mr Tung's conviction that "When Hong Kong succeeds, the country will benefit. When the country succeeds, Hong Kong will prosper", continuing to leverage Hong Kong's unique advantages to contribute to the nation.

Mr Tung Chee Hwa, Photo source: XInhua News