Sentiment among Hong Kong's small and medium-sized enterprises dampened following the inauguration of US President Donald Trump, the Hong Kong Productivity Council said Wednesday, citing a survey by Standard Chartered (HKG:2888).

The Standard Chartered Hong Kong SME Leading Business Index was 42.8 in the first quarter, down 2.9 points from the fourth quarter of 2024, the council said.

A reading of below 50 denotes a weaker sentiment.

About two of five, or 38%, of surveyed SMEs said Trump's return to the White House impacted business confidence. Sixty percent said tariff worries and changes in economic environment influenced their outlook, the council said.

"This is of little surprise, given uncertainties not only around Trump's tariffs, but also the scaling back in U.S. Fed cut expectations," the council quoted Standard Chartered Bank (Hong Kong) senior economist for Greater China Global Research Kelvin Lau as saying.