Affected by the turmoil in the Middle East, the business atmosphere of small and medium-sized enterprises in Hong Kong remained cautious in June.

The Hong Kong government's Census and Statistics Department released the results of the monthly survey on the business conditions of small and medium-sized enterprises (SMEs) for the month of June 2026 today (July 10). The current trend index of business revenue for SMEs decreased from 44.4 in May 2026 in the contraction zone to 44.0 in June 2026, while the outlook trend index for business revenue for the next month (July 2026) is 47.0. According to industry analysis, the current trend index of business revenue for some industries covered in the survey decreased in June 2026 compared to the previous month, especially in the real estate industry (from 49.3 to 45.6) and the logistics industry (from 40.7 to 39.5). The current trend index for new orders in the import-export trade industry increased from 46.0 in May 2026 to 46.4 in June 2026, while the outlook trend index for new orders for the next month (July 2026) is 47.2. A spokesperson for the Hong Kong government stated that the business sentiment of SMEs remained cautious in June due to the uncertain developments in the Middle East conflict. Both the current and outlook trend indexes of business revenue for SMEs slightly decreased compared to the previous month. Meanwhile, overall employment situation continues to remain stable. Looking ahead, the continued expansion of the Hong Kong economy is expected to support the business sentiment. However, the global situation remains volatile, especially if the geopolitical tensions in the Middle East escalate, it may affect business confidence. The government will continue to remain vigilant to changes in the external environment.