FX.co ★ Hong Kong Business Morale Inches Up in Q3

Business confidence in Hong Kong showed a modest improvement in the third quarter of 2025, rising to -8 from -9 recorded in the preceding quarter. The proportion of respondents who forecasted an enhancement in business conditions increased marginally to 10%, up from 9% in Q2. Conversely, the percentage of those predicting a downturn held steady at 18%. Confidence experienced a notable upturn in the financing and insurance sectors, climbing to 11 from 8 in Q2, and turned positive in the real estate market, shifting from -11 to 3. Although sentiment remained on the negative side, it showed improvement in several sectors: manufacturing (rising to -2 from -20), import/export trade and wholesale (slightly better at -18 from -19), accommodation and food services (improving to -16 from -37), and information and communications (better at -9 from -17). However, sentiment declined further in construction (dipping to -22 from -16), transportation, storage and courier services (down to -31 from -25), and professional and business services (falling to -14 from -6). Additionally, confidence in the retail sector slipped into negative numbers at -14, descending from a previously positive 4 in the last quarter.