FX.co ★ Hong Kong Private Sector PMI Lowest in Over 3 Years

The S&P Global Hong Kong SAR PMI decreased to 47.8 in June 2025 from 49.0 in May, reaching its lowest point since March 2022 and marking the fifth consecutive month of decline in private sector activity. Production experienced its most significant decrease in a year, while new orders contracted at the quickest rate seen in over three years. Sales to mainland China, as well as international markets, declined at an accelerated pace. Companies reduced their purchasing activities in light of diminished production demands and continued to clear backlogs for the sixth month in a row, although staffing levels remained stable. Supplier delivery times experienced a slight increase, putting an end to a three-month period of improved performance. Input cost inflation moderated to its lowest rate since January 2021, primarily due to easing wage pressures. Nonetheless, selling prices were reduced for the third time in four months as a strategy to stimulate demand. Business confidence hit its weakest point in nearly five years, impacted by weakened domestic demand, a muted global outlook, and uncertainty surrounding U.S. trade policies.