The S&P Global Hong Kong SAR PMI slipped to 51.0 in July 2026 from a four‑month high of 52.0 in June. Despite the decline, the index remained in expansion territory for a third consecutive month, supported by the fastest rise in output in five months. New orders also increased for a third straight month, although weaker external demand resulted in slower overall sales growth compared with June.
At the same time, firms continued to cut staff, with employment falling at the steepest rate in three years as businesses focused on cost control. Price pressures eased, as input costs rose at their slowest pace since March and output price inflation also moderated at the start of the third quarter.
Looking ahead, business confidence weakened. Companies turned more pessimistic about the year‑ahead outlook, citing concerns over the domestic economic environment and ongoing inflationary pressures.
