The S&P Global Hong Kong SAR PMI, a purchasing managers' index measuring business conditions, fell to 49.5 in August 2026 from 51.0 in July, signaling renewed deterioration in private-sector activity after three consecutive months of expansion. Output and new orders contracted for the first time since April as higher prices and weaker domestic and global demand reduced activity and sales. New export business declined marginally, although demand from Mainland China edged higher. Input cost inflation accelerated to a three-month high, driven by increased raw material and staff costs, and firms raised selling prices at the fastest pace since April 2023. Employment declined for a fifth consecutive month as weaker demand and spare capacity discouraged hiring. Business confidence also weakened, with firms increasingly pessimistic about the year-ahead outlook because of concerns over the domestic economy, US tariffs and geopolitical uncertainty.