Standard Chartered reports that the Small and Medium Enterprise Confidence Index (SMEI) decreased to 50.4 in April, reflecting a general moderation across key sub-indices compared to March. Specifically, the IT and transport services sub-indices contracted, while manufacturing SMEs demonstrated stronger performance. Credit conditions remained stable, with exchange rate expectations exhibiting increased stability. The immediate impact of tariffs appears limited.
The performance and expectations sub-indices experienced slight declines but remained within expansionary territory, suggesting continued growth and a stable outlook. Manufacturing SMEs benefited from consistent sales, production, and order volumes, potentially influenced by the temporary suspension of reciprocal tariffs between China and the US. Conversely, the performance index for non-manufacturing SMEs marginally contracted, with declines observed in labor usage, investment, and profitability, despite stable sales and new orders. Real estate and construction activity increased, while IT and transport performance weakened.
