Hong Kong's private sector fell to contractionary territory in February, the first time since August 2024 due to a decline in new business and a slump in business sentiment.
The seasonally adjusted S&P Global Hong Kong SAR Purchasing Manager's Index contracted to 49.0 in February, below the neutral mark of 50, from an expansion of 51.0 in January.
The decline, albeit marginal, was most pronounced in eight months, S&P said.
Business activity in the private sector slumped for the first time in five months alongside a decline in new orders, S&P said.
Staff numbers also declined during the month due to the dampened outlook, the report said.
Pessimism was at its highest in one and a half years amid intense competition, high prices, and uncertainty due to US policies, according to S&P.
The decline in business confidence "calls for greater policy support to stem further declines in sentiment," S&P Global Market Intelligence Economics Associate Director Jingyi Pan said.
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