Hong Kong's small- and medium-sized enterprises in March reported declining business receipts, reported the Census and Statistics Department (C&SD) on Thursday.

Enterprises that employ fewer than 50 people are classified as small- and medium-sized enterprises (SMEs) within the Hong Kong Special Administrative Region, by the C&SD.

The index for business receipts amongst SMEs increased to 43.5 in March from 42.1 in February, but still logged below the 50-marker that separates expanding revenue from contracting receipts.

For the month ahead, in March, Hong Kong SME's index of expected business receipts posted at 46.5, also in the contraction zone.

The SME index on new orders for the import and export trades increased 46.6 in March from 45.9 in February, while the outlook index on new orders in one month's time logged at 46.9, reported the C&SD.

Hong Kong's business services sector logged a receipts index of 48.4 in March, the highest among the seven business sectors. The restaurant sector placed the lowest, with a receipts index of 39.5.

The Hong Kong SME index for employment inched higher in March, to 49.6 from 49.1 in February, nearly reaching the 50-level that separates growth from contraction, according to C&SD figures.

The government of Hong Kong warned that recent changes in tariffs by the US could alter the outlook for Hong Kong SME enterprises.

"Looking ahead, as the United States increased its import tariffs significantly on almost all its trading partners in April, the downside risk to the global economy and the degree of uncertainty in the external environment have risen notably," said the C&SD, in a prepared statement. "This is likely to pose pressure on business sentiment. The government has been providing support to local enterprises (in particular the SMEs) through various measures, and will continue to monitor the situation closely."

Despite challenges for SMEs, Hong Kong's gross domestic product (GDP) grew by 2.5% on year in 2024, and is expected to grow by between 2% and 3% in 2025, the Hong Kong government estimated in late March.