S&P Global announced that Hong Kong’s Purchasing Managers’ Index (PMI) for September dropped to 50.4, down from 50.7 in August. It has remained in expansion territory for two consecutive months, reflecting a continued improvement in Hong Kong’s business environment, though the pace of growth has slightly slowed.

　　Data shows that during the period, the growth of Hong Kong’s economic activities expanded slightly compared to August, reaching the highest level since last December. However, new orders saw a slight decline for two consecutive months. New orders from mainland China and overseas markets significantly decreased at the end of the third quarter, indicating a continued weakening in Hong Kong’s export trade demand. Nevertheless, business sentiment stabilized in September. Although companies generally remained pessimistic, the level of pessimism was the lowest since December 2023. Surveyed companies stated that uncertainties in U.S. trade policies and the global economy have weakened business confidence, but optimism from the improvement in the local economy has partially offset the negative outlook.

　　S&P Global noted that Hong Kong’s economic activity expanded at the fastest pace in 10 months in September, while the decline in new orders remained consistent with August. Employment levels remained largely unchanged, and companies’ pessimism toward next year’s business prospects significantly eased. However, the decline in order demand remains noteworthy, with overseas markets recording the largest drop in three and a half years. Overall input cost increases were nearly the highest in two years, driven by rising raw material prices and employee costs, reflecting growing inflationary pressures.