Hong Kong’s private sector experienced a slowdown in growth during June, according to the latest HSBC Purchasing Managers’ Index (PMI). The index registered 49.4, a decrease from 51.2 in May, signaling a contraction in business activity.

A PMI reading above 50.0 indicates expansion, while a reading below 50.0 suggests contraction. This latest figure indicates a weakening of the Hong Kong economy.

Key findings from the report include:

• A decline in new orders, reflecting weaker demand.
• A reduction in output, as companies responded to lower order volumes.
• A decrease in employment levels, suggesting businesses are becoming more cautious about hiring.
• Slower input price inflation.

Economists suggest that the slowdown may be attributed to a number of factors, including global economic uncertainty and weaker demand from mainland China. The figures suggest a challenging period for businesses in Hong Kong.