In a sign of continued contraction, Hong Kong's manufacturing sector saw its activity fall for the second consecutive month in June. The S&P Global Manufacturing Purchasing Managers' Index (PMI) dipped to 47.8, down from the previous mark of 49.0 in May, as revealed on July 4, 2025.
A PMI reading below 50 indicates a contraction in the sector, suggesting that manufacturers are experiencing declining demand or facing difficulties in production. The drop from May to June signifies that the sector's challenges are persisting or even worsening. This latest reading could raise concerns among policymakers and investors about the resilience of Hong Kong's industrial base amidst global economic uncertainties.
Analysts will keenly observe whether these contractions will spur policy responses aimed at stimulating manufacturing activities or if external factors will aid in reviving the sector's fortunes. The continued downward trend highlights the need for strategic interventions to bolster manufacturing amidst a challenging macroeconomic environment.
