FX.co ★ Hong Kong Private Sector PMI Hits 9-Month Low

The S&P Global Hong Kong SAR PMI dropped to 48.3 in March 2025 from 49.0 in February, indicating a continued decline for the second month and reaching the lowest point since June 2024. A significant decrease in new orders marked the steepest fall in nine months, largely due to sluggish domestic and external demand, particularly from mainland China. The manufacturing sector experienced the most substantial reductions in both orders and output. Concurrently, employment levels declined for the third time in four months, as companies reduced staff in response to increased competition and policy uncertainty. Purchasing activity also diminished, resulting in the fastest reduction of input inventories since August 2023. On the cost front, input prices increased at their quickest rate since October 2024, primarily driven by wage inflation, although overall price pressures appeared to be easing. Despite this, selling prices remained low amid weak demand. Looking ahead, business sentiment fell to its lowest in a year and a half, with firms expressing concerns over competition, inflation, and policy uncertainty.