Hong Kong's PMI further declines as orders weaken

Hong Kong’s private sector business conditions deteriorated at the end of the first quarter, with the pace of decline accelerating from February, as new business orders from overseas and mainland China weakened, according to S&P Global.

S&P Global Hong Kong SAR Purchasing Manager’s Index – a composite single-figured indicator of performance – dropped to a seasonally adjusted 48.3 in March from 49 in February, remaining below the neutral 50.0 mark for a second consecutive month.

The downturn was the steepest in nine months, according to S&P Global.

Weak demand led to a sharp decline in overall orders and a more significant drop in employment levels in March, with the pace of job cuts being the steepest since July 2023.

Business sentiment worsened further, with companies’ expectations for the future at their lowest level since November 2020.

Despite weak demand conditions, output in March saw a modest rise, while average delivery times shortened for the first time in nine months, S&P Global said.

STAFF REPORTER