Financial Wire

Hong Kong SME Sentiment Deteriorates in March Amid Middle East Conflict

-- Business sentiment among Hong Kong's small and medium-sized enterprises deteriorated during March.

The current diffusion index on business receipts amongst SMEs fell to 44.3 in March from 45.3 in February, data released by the city's Census and Statistics Department on Tuesday showed.

The outlook index for April stood at 46.9. Readings above 50 indicate expansion, while those below signal contraction.

A government spokesman said business sentiment "eased somewhat" in March, reflecting the heightened geopolitical tensions in the Middle East.

According to the spokesman, both the current and outlook diffusion indices declined from the near two-year highs witnessed in the preceding month.

"Geopolitical tensions in the Middle East will likely continue to influence local business sentiment, though the sustained expansion of the economy will provide support," the spokesman said in a statement.

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