Standard & Poor's global September Hong Kong PMI fell to 50.4, and business pessimism weakened.

Standard & Poor's Global announced that in September, the Hong Kong Purchasing Managers' Index (PMI) fell to 50.4, down from 50.7 in August, remaining in the expansion zone for two consecutive months, reflecting a continued improvement in Hong Kong's business environment, but with a slight decline in sentiment. The data shows that economic activity in Hong Kong grew slightly more in September compared to August, reaching the highest level since December last year, while new orders decreased slightly for the second consecutive month. Towards the end of the third quarter, new orders from mainland China and overseas markets saw a significant decline, reflecting a continuous weakening of Hong Kong's export trade demand. However, the commercial atmosphere stabilized in September, with businesses generally remaining cautious but with the lowest level of pessimism since December 2023. Surveyed companies mentioned that the uncertainty in US trade policies and the global economy have weakened business confidence, but the local economic improvement has brought optimism, to some extent offsetting the negative views. Standard & Poor's Global indicated that economic activity in Hong Kong expanded at the fastest pace in 10 months in September, with the decline in new orders remaining unchanged from August, employment numbers remaining relatively stable, and the pessimism about next year's business outlook greatly diminishing. However, the decline in order demand is still significant, with the largest drop in overseas markets in three and a half years. Overall input costs saw a near-two-year high increase, reflecting rising prices of raw materials and staff costs, indicating an increase in inflationary pressures.