Business productivity lags in February, according to Standard Chartered’s reports.

The Small and Medium Enterprise Confidence Index (SMEI) declined by 0.5 points to 50.4 in February, showing a decrease in current performance sub-index and a slight improvement in expectations sub-index. The performance sub-index fell to 48.5, entering contractionary territory, likely due to holiday distortions, while the expectations sub-index rose, indicating a temporary setback. Manufacturing SMEs reported a decline in sales, production, new orders, and profitability, possibly due to Lunar New Year holiday disruptions and additional tariffs. Tourism-related services, such as transportation, retail, and accommodation, and catering, returned to normal following a sharp increase in January, while real estate performance recovered. Construction activity remained subdued. The credit sub-indices moderated to 51.8 in February, with fuelled by lower financing costs for SMEs. Exchange rate expectations stabilized in February, having spiked in prior months. Overall, the index’s performance worsened, while expectations improved, suggesting a temporary downturn.