2025.09.0300:44:08UTC+00Hong Kong Private Sector Expands for 1st Time in 7 Months

In August 2025, the S&P Global Hong Kong SAR PMI experienced an uptick, reaching 50.7 from July's 49.2, marking the first expansion in private sector business conditions in seven months, albeit a modest one. This growth is attributed to a renewed increase in output, observed for the first time in five months and at the most rapid pace since November 2024, aided by a relative stabilization in domestic demand. However, new orders from international markets and Mainland China continued to experience a significant downturn, affected by elevated US tariffs and challenging global economic conditions. Notably, employment saw a slight rise, reversing three months of job losses, while the decline in purchasing activity slowed. As for prices, input costs continued to rise, driven by pressures on raw materials and wages, although companies generally maintained stable selling prices to preserve demand. Despite this slight recovery, outlook sentiment for the year ahead remained noticeably negative, with ongoing concerns about global trade and economic challenges.