Hong Kong Private Sector Growth at Nearly 3-Year High

The S&P Global Hong Kong SAR PMI rose to 53.3 in February 2026 from 52.3 in January, marking a seventh straight month of improvement and the strongest expansion in business conditions in just under three years. The upturn was driven by sharper increases in output and new orders, with overall sales growing at the fastest pace in three months. Backlogs of work rose for a third consecutive month, with the pace of accumulation the steepest in 12 years, while firms responded by raising employment for the first time in four months, though job creation was only marginal. Purchasing activity also increased sharply, while supplier delivery times lengthened for the first time since November. On prices, input cost inflation eased but remained solid, while output charge inflation climbed to its highest level since October 2023. Looking ahead, sentiment remained subdued despite improving from January, with firms citing intense competition and weak local demand as key concerns.

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.