Hong Kong Private Sector Returns to Growth in October

The S&P Global Hong Kong SAR PMI rose to 50.2 in October 2026 from 49.2 in September, moving back above the 50 no-change mark and signaling the first expansion in private-sector activity in three months. The recovery was supported by a marginal increase in new orders, ending a two-month contraction, while new business from mainland China expanded at its fastest in eight months. New export orders also rose for the second straight month, although growth slowed. Firms raised purchasing activity and input stocks, while supplier delivery times shortened for the first time in six months. Meanwhile, employment fell for a seventh month, but job cuts eased from September’s six-and-a-half-year record. Purchase cost inflation accelerated to a five-month high and one of the steepest rates in five years. Higher input and fuel costs also pushed selling prices higher. Lastly, business confidence fell to its lowest since August 2020, amid concerns about economic conditions and geopolitical tensions

The S&P Global Hong Kong SAR PMI declined to 49.2 in September 2026 from 49.1 in August, marking the second straight month of contraction. It was the fastest contraction in private-sector business activity since April, as new orders and output fell for the second straight month due to challenges in the economic environment. However, foreign sales rose for the first time in three months and at the sharpest pace since May. Employment continued to decline, posting its sharpest fall in almost six-and-a-half years. Meanwhile, purchasing activity increased, helping inventory levels to rise for the fifteenth time in the past 16 months. Delivery times lengthened due to higher transportation costs. On the price front, input costs rose, boosted by higher raw material costs, while output cost inflation eased due to discounts as part of efforts to boost sales. Lastly, sentiment weakened to its lowest level since 2020, amid higher tariffs, increased competition, and challenging business conditions.

The S&P Global Hong Kong SAR PMI fell to 49.5 in August 2026 from 51.0 in July, signaling a renewed deterioration in private sector business conditions after three consecutive months of expansion. Output and new orders both contracted for the first time since April, as higher prices and weaker domestic and global demand weighed on activity and sales. New export business also declined marginally, although demand from Mainland China edged higher. Meanwhile, input cost inflation accelerated to a three-month high, driven by higher raw material and staff costs, prompting firms to raise selling prices at the fastest pace since April 2023. Employment declined for a fifth consecutive month as weaker demand and spare capacity discouraged hiring. Looking ahead, business confidence weakened further, with firms increasingly pessimistic about the year-ahead outlook amid concerns over the domestic economy, US tariffs and geopolitical uncertainty.