FX.co ★ Hong Kong Private Sector PMI at 6-Month High

The S&P Global Hong Kong SAR PMI increased to 49.2 in July 2025, up from 47.8 in June, reaching its highest level in six months. Although this indicated the sixth straight month of contraction in private sector activity, the rate of decline was the most moderate in the current downturn. This gentler deterioration was due to slower reductions in both output and total new orders; however, foreign demand—especially from Mainland China—continued to decline sharply. The weak demand conditions also resulted in renewed job losses, with business confidence remaining decidedly pessimistic. On the inflation side, input cost pressures intensified to a four-month peak, driven by increased purchase prices. Nonetheless, selling prices remained generally stable throughout July.