Headline SMEI retreated to 50.4 in April as all key sub-indices edged down from March. IT and transport services performance sub-indices fell below 50; manufacturing SMEs outperformed. Credit conditions remained steady, but not more favourable; exchange rate expectations were more stable, Standard Chartered's note.
Tariff impact appears limited for now
"Our proprietary Small and Medium Enterprise Confidence Index (SMEI; Bloomberg: SCCNSMEI <Index>) returned to the February reading of 50.4 in April after jumping to 51.2 in March. While the performance and expectations sub-indices edged down by 0.9pts and 1pt, respectively, from March, both stayed in expansionary territory, indicating still-steady growth and a stable outlook."
"Manufacturing SMEs outperformed on steady growth in sales, production, new orders and new export orders, despite heightened bilaterial tariffs imposed by both China and the US. The US’ 90-day pause on non-China reciprocal tariffs may have supported front-loaded activity. In contrast, the performance index for non-manufacturing SMEs fell marginally below 50 again, after rising sharply in the previous month. Sales and new orders remained relatively stable, but labour usage, investment and profitability for non-manufacturing SMEs declined versus March. Real estate and construction activity picked up entering Q2, while that of IT and transport performance softened."
"The credit sub-indices edged down further to 50 in April, the lowest reading since August 2024, suggesting a stable credit environment for SMEs. Banks appear to have remained supportive to SMEs, albeit without further improvement. Funding costs for SMEs borrowing from non-bank financial institutions (NBFIs) fell again. Interestingly, c.97% of the surveyed SMEs expect a stable USD-CNY in the coming three months."
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD grinds higher toward 1.1600 amid risk reset
EUR/USD stretches further north toward 1.1600 in European trading on Monday amid an extended US Dollar downturn. Traders overlook escalating Israel-Iran conflict amid improving market sentiment, bracing for the Fed policy decision due on Wednesday.
GBP/USD advances toward 1.3600 as US Dollar loses ground
GBP/USD extends its rebound toward 1.3600 in Monday's European session, helped by a continued selling wave around the US Dollar. Markets seem to look past the deepening Middle East conflict, resorting to position adjustments ahead of the Fed and BoE policy announcements later this week.
Gold price sticks to intraday losses above $3,400 amid receding haven demand
Gold price holds its steady retreat from a nearly two-month peak while defending the $3,400 mark in the European session on Monday. A generally positive tone around the equity markets is seen as a key factor undermining the safe-haven bullion, which now seems to have snapped a three-day winning streak.
Pi Network Price Forecast: Rising CEX reserves amid .pi domains auction update warns turbulence
Pi Network (PI) edges lower by under 0.50% at press time on Monday after failing to join the broader cryptocurrency market recovery the previous day. Pi Network released an update on the .pi domains auction on Thursday, but it failed to boost sentiments amid a market-wide correction.
Week ahead – Markets brace for central bank barrage amid heightened uncertainty
Fed officials to stand pat as they await further clarity. A dovish BoJ could push rate hike expectations into 2026. Deflation fuels speculation about negative SNB rates. BoE may sound more dovish after disappointing UK data.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.