Manufacturing activity deteriorated in both Mexico and Hong Kong SAR in August 2026, with the S&P Global Mexico Manufacturing PMI falling to 49.8 from 51.3 in July and the S&P Global Hong Kong SAR PMI declining to 49.5 from 51.0. Mexico’s downturn reflected the steepest factory-output contraction in eight months, subdued demand, material shortages and shipping delays linked to conflicts in the Middle East. New export orders in Mexico fell at the quickest pace in 2026, prompting manufacturers to reduce purchasing activity for the first time in three months, while input cost inflation eased to a five-month low but remained elevated. In Hong Kong SAR, output and new orders contracted for the first time since April as higher prices and weaker domestic and global demand weighed on activity. Input cost inflation accelerated to a three-month high, firms raised selling prices at the fastest pace since April 2023, and employment declined for a fifth consecutive month. Confidence weakened in both markets amid concerns about economic conditions, US tariffs and geopolitical uncertainty.