The S&P Global Hong Kong SAR PMI rose to 50.7 in August 2025 from 49.2 in July, signaling the first expansion in private sector business conditions in seven months, albeit marginal. The growth reflected a renewed rise in output, the first in five months and the sharpest since November 2024, supported by a relative stabilization of domestic demand. However, new orders from international markets and Mainland China continued to decline sharply, weighed down by higher US tariffs and subdued global conditions. Meanwhile, employment grew slightly, ending three months of job losses, while purchasing activity contracted at a softer pace. In terms of prices, input costs increased further, driven by raw material and wage pressures, though firms kept selling prices broadly unchanged to sustain demand. Despite the modest recovery, sentiment towards the year-ahead outlook remained firmly negative, with concerns over global trade and economic headwinds persisting.