Business confidence in Hong Kong slipped to -5 in Q2 2026 from -3 in the previous quarter, its lowest level in three quarters. The proportion of respondents expecting an improvement in business conditions was unchanged from Q1 2026 at 11%, while the share anticipating a deterioration rose to 16% from 14%.
The downturn was most pronounced in accommodation and food services (-35), where substantially more respondents forecast a weaker business environment, lower output, and reduced employment. The construction sector also remained subdued (-21), with expectations tilted toward softer activity and notably lower selling prices.
By contrast, financing and insurance (+12) recorded a more positive outlook, with more respondents expecting better business conditions and higher output. Overall, selling price expectations were stable to higher across most sectors, particularly in import/export trade and wholesale, where more firms anticipated price increases. Construction was the main exception, with a significantly larger share of respondents expecting lower tender prices.
