Hong Kong’s September purchasing managers’ index fell to 49.2, marking a second month of deteriorating private-sector business conditions. Output and new orders weakened while employment declined for a sixth consecutive month. Staff reductions were the fastest in almost six and a half years. Export demand improved, but firms became more pessimistic and faced continuing increases in materials and transport costs.
Hong Kong’s seasonally adjusted purchasing managers’ index fell to 49.2 in September from 49.5 in August.[1], [2]
The S&P Global survey tracks private-sector business conditions through responses from companies. Conditions deteriorated for a second consecutive month. Output and new orders declined again, though the reduction in new orders was smaller than in August.[1]
Employment fell for a sixth consecutive month. September’s reduction was the fastest in almost six and a half years, with some employers leaving vacancies unfilled to save costs. Unfinished work increased for the first time in three months as businesses operated with fewer staff and comparatively stable new business. Confidence weakened for a third month amid concerns over economic conditions, competition and tariffs.[1]
Growth in export orders accelerated for the first time in three months and was the strongest since June. Orders from mainland China increased for a fourth consecutive month. Businesses raised purchasing activity in preparation for new undertakings, and inventories increased in 15 of the past 16 months.[1]
Materials and transport costs continued rising, although purchasing-price inflation slowed to its lowest pace in six months. Wage growth was unchanged from August. Selling prices increased for a fifteenth month at a slower pace; some firms raised charges to cover expenses while others discounted prices to encourage sales.[1]
