Hong Kong's private sector business conditions remained in contraction for a sixth straight month in July, dragged by persistent weakness in both domestic and external demand, according to a Tuesday statement from S&P Global.
The S&P Global Hong Kong SAR Purchasing Managers' Index rose to 49.2 in July from 47.8 in June, marking the softest deterioration in operating conditions in six months.
New business inflows continued to decline, particularly from Mainland China and overseas markets, while output fell for a second month, albeit at a more moderate pace.
Weak demand also led to a renewed drop in employment and a further decrease in backlogs.
S&P noted that input cost inflation accelerated to a four-month high, driven by rising purchase prices, even as staff costs declined for the first time in six months.
Selling prices were broadly stable as firms sought to support sales.
Business sentiment remained strongly pessimistic, with concerns around global demand, heightened trade barriers, and competition weighing on the outlook.
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