Hong Kong’s manufacturing activity expected to remain weak in early 2025

The headline seasonally adjusted S&P Global Hong Kong purchasing manager's index fell slightly to 51.1 in December 2024, down from 51.2 in the previous month, according to the report released on Monday.

The reading, surpassing the 50-mark that separates expansion from contraction on a monthly basis, reflects a continued improvement in the business environment, albeit at a slower pace than in the previous month.

S&P Global said the slowdown is likely to continue at the start of 2025 given the forward-looking index and the concerns about the challenges from US-Sino tensions.

In the past December, new orders from both overseas and Mainland China contracted, slowing down the overall order growth and the pace of expansion of business activity. 

Though the surveyed firms remained pessimistic about the business outlook, leading to a reduction in staffing levels, they continued to purchase aggressively and raise inventory levels.

(Themis Qi)