The S&P Global Hong Kong SAR PMI fell to 48.3 in March 2025 from 49.0 in February, marking the second straight month of contraction and the lowest since June 2024. New orders saw their sharpest decline in nine months, driven by weak domestic and external demand, especially from mainland China, with manufacturing seeing the steepest drops in orders and output. Meanwhile, employment levels fell for the third time in four months, as firms responded to rising competition and policy uncertainty by cutting staff. Purchasing activity also weakened, leading to the fastest depletion of input stocks since August 2023. On the cost front, input prices rose at the fastest pace since October 2024, driven mainly by wage inflation, though overall price pressures showed signs of easing. However, selling prices remained subdued amid weak demand. Looking ahead, business sentiment deteriorated to a one-and-a-half-year low, as firms cited concerns over competition, inflation, and policy uncertainty.