SME business receipts diffusion index dips to 46.7 in October

The current DI is also lower than the November estimate of 49.7.

The diffusion index amongst small and medium enterprises (SMEs) dipped in October to 46.7 from 47.8 last month.

It is also lower than the expected DI in November at 49.7.

From the major sectors analysed by the Census and Statistics Department  (CS&D), DI decreases were recorded amongst restaurants (from 54.2 to 44.2) and wholesale trade (from 47.4 to 43.4). 

Performance of restaurants was affected by adverse weather during the month, whilst trade was weighed down by supply bottlenecks and the threat of the more infectious Delta variant, a government spokesperson said.

On the other hand, retail trade  (from 46.7 to 48.6) and business services (from 46.2 to 47.5) saw increases. 

DI on new orders for the import and export trades likewise declined to 49.1 from 49.4 last month and is expected to further dip to 48.6 next month.

The government spokesperson also said business sentiment amongst SMEs somewhat softened for the month due  to “increased uncertainties over the global economic outlook.”