SME business receipts diffusion index up to 44.4

All surveyed sectors saw an increase in diffusion index in February 2021.

The diffusion index (DI) on business receipts amongst SMEs went up to 44.4 in February 2021, from 38.1 in the contractionary zone in January 2021, according to the Census and Statistics Department (C&SD).

Analysed by sector, the current DIs on business receipts for all the surveyed sectors increased in February as compared with previous month, particularly for restaurants (from 24 to 45.5), wholesale trade (from 37.1 to 45.6), and business services (from 40.5 to 47.9).

The current DI on new orders for the import and export trades also increased to 42.4 during the period.

“Business sentiment among SMEs continued to improve in February alongside the easing of the fourth wave of local epidemic,” according to a government spokesperson.

The spokesperson added that the large-scale counter-cyclical measures unveiled by the Budget will help alleviate the pressure caused by the economic downturn and the epidemic; business confidence can revive to support a broader based recovery of the economy should the COVID-19 vaccination program achieve its intended results.