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Business prospects of prominent establishments

With a view to providing a quick reference, with minimum time lag, for predicting the short-term future economic performance of the local economy, statistics on business prospects are compiled based on results of the Quarterly Business Tendency Survey.  The survey gathers views* on short-term business performance from the senior management of about 500 to 600 prominent establishments in ten major sectors in Hong Kong.

Survey results are generally presented as "net balance", i.e. the difference between the percentage of respondents choosing "up" and that choosing "down".  The percentage distribution of respondents among various response categories (e.g. "up", "same" and "down") reflects how varied their business expectations are.  The "net balance", with its appropriate sign, indicates the direction of expected change in the variable concerned.  A positive sign indicates a likely upward trend while a negative sign, a likely downward trend.  However, the magnitude of the "net balance" reflects only the prevalence of optimism or pessimism, but not the magnitude of expected change, since information relating to such magnitude is not collected in the survey.

For details, please refer to the "Report on Quarterly Business Tendency Survey"
(https://www.censtatd.gov.hk/hkstat/sub/sp300.jsp?productCode=B1110008).

Business Situation of Small and Medium-sized Enterprises

The Monthly Survey on the Business Situation of Small and Medium-sized Enterprises aims to provide a quick reference, with minimum time lag, for assessing the short-term business situation faced by small and medium-sized enterprises (SMEs) through collecting views* from a panel sample of around 600 SMEs in selected sectors in Hong Kong. SMEs in the sectors covered refer to establishments with fewer than 50 persons engaged.

Diffusion index is computed by adding the percentage of SMEs reporting “up” in the category concerned (e.g. business receipts and employment) to one half of the percentage of SMEs reporting "same". A reading above 50 indicates that the business condition is generally favourable, whereas that below 50 indicates otherwise.

For details, please refer to the "Report on Monthly Survey on the Business Situation of Small and Medium-sized Enterprises"
(https://www.censtatd.gov.hk/hkstat/sub/sp300.jsp?productCode=B1080015).

* Respondents were requested to exclude the changes arising from normal seasonal variations in reporting their views.