In an unexpected twist for the city's economy, business confidence in Hong Kong has inched upward, reaching -8 in the third quarter of 2025, a minor improvement from -9 in the previous quarter.

A brighter outlook is on the horizon, with the percentage of respondents anticipating better business conditions ticking up to 10%, compared to 9% in Q2. However, a stubborn 18% still foresee a decline in conditions.

The finance and insurance sectors demonstrated a notable bounce back, with confidence levels rising to 11 from 8 in Q2. The real estate market also turned a corner, jumping to a positive 3 after previously lingering at -11.

Manufacturing has shown signs of recovery as well, moving up to -2 from a staggering -20, while the import/export trade and wholesale sector edged slightly better to -18 from -19. Surprisingly, the hospitality sector, encompassing accommodation and food services, improved significantly from -37 to -16, indicating a potential revival in tourism.

On the flip side, construction has taken a hit, plummeting to -22 from -16, and confidence among transportation, storage, and courier services has worsened, dipping to -31 from -25. Professional and business services also saw a decline, falling to -14 from -6.

In retail, the mood has darkened, dropping to -14 from a more optimistic 4 last quarter.

As these mixed sentiments unfold, experts are left pondering whether this slight uptick in morale signals a larger trend towards economic recovery or if challenges lie ahead. Stay tuned!