FX.co ★ Hong Kong Business Morale Improves Marginally

In the second quarter of 2025, Hong Kong's business confidence showed a slight improvement, rising to -9 from -10 in the prior quarter. The percentage of respondents who foresee better business conditions held steady at 9%, while those expecting a decline dipped slightly to 18% from 19%. Notable improvements were observed in sectors such as manufacturing, rising to -20 from -22, transportation, storage, and courier services, improving to -25 from -27, real estate up to -11 from -15, and professional and business services advancing to -6 from -8. The retail sector notably shifted to a positive outlook at 4, recovering significantly from -31. However, sentiment deteriorated in sectors like construction, which fell to -16 from -14; import/export trade and wholesale, declining to -19 from -15; accommodation and food services, down to -37 from -36; and information and communications, slipping to -17 from -11. Additionally, there was a weakening in the financing and insurance sector, with sentiment dropping to 8 from 10.