Hong Kong September PMI falls to 49.2 as competition hits new orders
S&P Global reported Hong Kong's seasonally adjusted PMI dropped to 49.2 in September from 49.5 in August, marking two consecutive months of decline. Firms cited reduced customer numbers and heightened competition for the downturn.
S&P Global reported that Hong Kong's seasonally adjusted Purchasing Managers' Index (PMI) fell to 49.2 in September, down from 49.5 in August, marking the second consecutive month of declining business conditions.
Surveyed firms said that a reduction in customer numbers and intensifying competition made it difficult to secure new orders. However, the decline in new orders last month was slight and narrowed month-on-month, suggesting that pricing strategies were effective and that new projects successfully generated orders. New export orders expanded at their fastest pace in three months, reaching the highest level since June, with a significant increase in orders from mainland China.
Business confidence weakened for the third straight month, with firms pessimistic about the business outlook for the coming year due to economic challenges, limited orders sparking fierce competition, and tariff policies.
Employment contracted for the sixth consecutive month in September, with the rate of contraction reaching its highest in nearly six and a half years. Firms did not fill positions left by departing staff. Staff costs remained flat compared with August. The reduction in headcount led to a backlog of orders for the first time in three months.
Rising raw material prices and increased transportation costs drove up procurement costs, although the rate of increase was the smallest in six months. Output price increases moderated but remained elevated for the 15th consecutive month.