S&P PMI: H. Kong business activity falls in August ’24

The seasonally adjusted S&P Global Hong Kong SAR Purchasing Manager’s Index (PMI) was 49.4 in August, slightly lower than July’s 49.5. Business conditions have been deteriorating for four months, with the rate of decline staying consistent.

In August, business activity in the Hong Kong SAR private sector declined slightly as new orders continued to decrease. Weak market conditions and lower client spending dampened demand, particularly affecting manufacturing firms.

However, the contraction rates for both output and new orders did ease in August. Notably, new business inflows from Mainland China and international markets increased, with the latter rising for the first time since October of the previous year.

Employment levels also fell for the fourth consecutive month, as firms experienced little need to replace departing staff due to easing capacity pressures.

Additionally, purchasing levels decreased for the first time since April, leading to a depletion of stock purchases for the first time in seven months. Firms appeared reluctant to maintain additional inventory amid falling demand.

Attribution: S&P Global Hong Kong SAR PMI report

Subediting: M. S. Salama