The S&P Global Hong Kong SAR PMI rose to 49.2 in July 2025 from 47.8 in June, marking the highest reading in six months. While this signaled a sixth consecutive monthly contraction in private sector activity, the pace of decline was the softest in the current downturn. The milder deterioration reflected slower declines in both output and total new orders, though foreign demand, particularly from Mainland China, continued to fall sharply. Weak demand conditions also led to renewed job losses, while business confidence remained strongly pessimistic. On the inflation front, input cost pressures accelerated to a four-month high, driven by rising purchase prices. However, selling prices remained broadly stable in July.