FX.co ★ Hong Kong Private Sector Activity Contracts in August

The S&P Global Hong Kong SAR PMI slipped to 49.5 in August 2026 from 51.0 in July, indicating a renewed deterioration in private‑sector business conditions after three consecutive months of expansion. Both output and new orders declined for the first time since April, as higher prices and softer domestic and external demand weighed on activity and sales. New export business also registered a marginal fall, though demand from Mainland China showed a slight improvement.

On the cost side, input price inflation accelerated to a three‑month high, reflecting increased raw material and labor costs. In response, firms raised their selling prices at the fastest pace since April 2023. Employment fell for the fifth month in a row, as weaker demand and excess capacity continued to restrain hiring.

Looking ahead, business sentiment deteriorated further. Firms became increasingly pessimistic about the outlook for the next 12 months, citing concerns about the domestic economic environment, US tariffs and ongoing geopolitical uncertainty.