Standard Chartered Hong Kong SME Leading Business Index slightly declined by 0.6 points from the previous quarter to 43 in the second quarter, reflecting cautious business sentiment among small and medium-sized enterprises amid an uncertain global economic outlook.
The survey, conducted by the Hong Kong Productivity Council, showed that among the five component sub-indices, the Global Economy sub-index declined by 15.5 points to 20.9, indicating a notable drop in SMEs' perceptions of the external economic environment.
Tommy Wu, senior economist for Greater China and North Asia at Standard Chartered, said the steep decline in the Global Economy sub-index is mainly due to the Middle East conflicts, particularly amid rising oil prices and the expected economic repercussions.
Wu said he remains cautiously optimistic about Hong Kong's economy this year, maintaining the GDP growth forecast at 3.2 percent.
He believes the first quarter will also see relatively faster growth, supported by decent export growth in the first two months, strong electronics trade performance, a buoyant IPO market, and increased visitor arrivals, all of which support local retail sales.
The survey found that SMEs use AI to ease recruitment challenges, with 55 percent preferring applicants with strong AI skills. This AI factor also led 77 percent of SMEs to recruit more fresh graduates.
Karen Fung Ka-po, chief marketing officer of HKPC, said she hopes SMEs can provide AI training for their employees, as the government is actively promoting AI Training for All, in which the 2026-27 Budget allocated HK$50 million to popularize the understanding and use of AI at all levels of society.
