-- Hong Kong's private sector business conditions deteriorated for a second straight month in April as output and new orders declined amid sharply higher costs linked to the war in the Middle East, according to a report released Wednesday by S&P Global.
The S&P Global Hong Kong SAR Purchasing Managers' Index fell to 48.6 in April from 49.3 in March, marking the sharpest deterioration in business conditions in 10 months.
Output contracted at the fastest pace since June 2025, while new orders fell for a second consecutive month.
Demand from mainland China weakened for the first time in seven months, though new export orders returned to growth.
Input costs rose at the fastest pace since October 2011, driven by higher raw material prices following the outbreak of war in the Middle East. Firms raised selling prices at the quickest pace since August 2023.
Employment declined for the first time in three months, while backlogs of work continued to fall amid weaker demand and spare capacity.
Businesses remained pessimistic about the outlook, citing heightened geopolitical uncertainty stemming from the war in the Middle East, alongside intensified market competition.