Hong Kong's private sector contracted to its most pronounced rate in nine months while pessimism grew to its strongest since November 2020.
The S&P Global Hong Kong Purchasing Manager's index dropped to 48.5 in March from 49 in February, indicating a deterioration at the end of Q1, according to data released Thursday.
Total new orders fell to their steepest since June 2024 due to dismal economic conditions, more intense competition, and an uncertain trade outlook, S&P said.
The decline also led to lower backlogs, while the diminished capacity also contributed to a decline in hiring, leading to the fastest fall in employment in 20 months.
Purchasing activity also decreased for the third straight month in March, but subdued input demand also helped improve delivery times for the first time in nine months, according to S&P.
Concerns about global economic outlook, trade barriers, and stiffer competition fueled pessimism during the month, S&P said.
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