Hong Kong Private Sector Growth Accelerates

The S&P Global Hong Kong SAR PMI rose to 52.3 in January 2026 from December’s three-month low of 51.9, signaling a sixth consecutive month of private-sector growth driven by stronger new business inflows. Foreign sales expanded at the fastest pace in nearly three years, while backlogs increased for a second month, with accumulation quickening despite continued job shedding, though marginal. Purchasing activity picked up, while supplier performance improved for the second straight month. On the price front, input costs rose, reflecting higher raw material and labor expenses, though overall input inflation eased. Meanwhile, output prices logged modest acceleration, even as firms offered discounts to spur demand. Looking ahead, business confidence slipped to a five-month low, weighed down by concerns over U.S. trade policy and intensifying market competition.

The S&P Global Hong Kong SAR PMI eased to 51.9 in December 2025 from November’s near three-year high of 52.9, signaling slower momentum yet sustained expansion. Output rose for a fifth month, with growth moderating but still among the strongest in over three years. New orders matched output’s pace, marking the second-fastest rise since April 2023, helped by firm demand from mainland China and overseas. Purchasing activity and inventories continued to expand, though more modestly, while supplier performance improved for the first time since May. Stronger orders lifted backlogs for the first time in a year, with accumulation at its quickest since November 2024. Employment fell for a second month as firms refrained from replacing leavers. Input costs climbed on pricier raw materials and sharply higher staff expenses, prompting firms to raise selling prices, driving charge inflation to a 26-month peak. Finally, sentiment notched its lowest since June 2023 amid global and tariff concerns.

The S&P Global Hong Kong SAR PMI jumped to 52.9 in November 2025 from 51.2 in October, marking a fourth straight month of expansion in private sector activity and the fastest pace since March 2023. The improvement was driven by stronger growth in both output and total new orders, supported by firmer demand from abroad and from Mainland China. Robust demand conditions also led to a further increase in input buying, though firms remained cautious about hiring amid subdued sentiment toward the year ahead. On the price front, input cost inflation accelerated to the second highest level in two years, reflecting rising purchasing and labor costs. As a result, output charges increased at the fastest rate since September 2024.