Business situation improved in December 2022: gov’t

The diffusion index on business receipts for SMEs went up 46.1.

The situation of small and medium-sized enterprises (SMEs) improved last month, with current diffusion index (CDI) business receipts amongst businesses increasing to 46.1 in December 2022, the Census and Statistics Department (C&SD) said.

This was an increase from the contractionary zone in November with 44.0 of CDI. The DI for business receipts is seen to grow to 50 in January, said C&SD.

On new orders for the import and export trades, the DI increased from 44.9 in November 2022 to 46.2 in December 2022 whilst outlook DI on new orders in one month's time (i.e. January 2023) was 49.1.

A government spokesman said that the further relaxation of social distancing measures and expected increase in visitor arrivals should provide support to business sentiment. But the spokesman said tightened financial conditions and the deteriorating global economic outlook will continue to bring uncertainties. 

The survey used a panel sample of about 600 SMEs each month.