FX.co ★ Hong Kong Private Sector Continues to Weaken

The S&P Global Hong Kong SAR Purchasing Managers’ Index (PMI) remained constant at 48.3 in April 2025, mirroring the figure from March. This stability reflects a continued contraction in business activity for the third month in a row. New orders experienced their most significant decline since June 2024, primarily driven by a sharp decrease in export sales, particularly to Mainland China. Consequently, production levels decreased for the second time within three months, with the wholesale and retail sector being notably affected. Employment figures fell for the third consecutive month, albeit at a more gradual rate, while purchasing activities further diminished and inventory depletion continued at a modest rate. However, there was an improvement in supply chain performance, demonstrated by the best vendor delivery times in two years. Regarding pricing, input costs rose at their lowest rate this year, prompting firms to reduce selling prices to boost sales. Looking forward, business sentiment hit its lowest point since September 2020, as companies expressed increased pessimism due to escalating trade uncertainties and economic challenges.