The seasonally adjusted S&P Global Hong Kong Purchasing Manager's Index (PMI) posted 49.2 in July, up from 47.8 in June. The latest reading signaled a sixth consecutive monthly deterioration in business conditions, albeit with the rate of decline the softest seen over this period.

A key factor keeping the index below the neutral 50 level was a sustained reduction in new orders during July. Total new business fell for the sixth month in a row, though only modestly, as weaker domestic and global economic conditions weighed on sales in local and international markets.

Incoming new business from abroad and Mainland China continued to fall sharply in the latest survey period, with the respective rates of decline little-changed from June. In line with the trend seen for overall new business, output fell at a softer and modest pace in July.