Hong Kong SAR PMI rises to 51.2, highest in nearly a year

Investing.com -- Hong Kong SAR’s private sector business conditions improved at the strongest rate since November 2024, according to the latest S&P Global PMI data released Wednesday.

The headline Purchasing Managers’ Index rose to 51.2 in October from 50.4 in September, marking the third consecutive month of improvement in business conditions.

New order inflows increased for the first time in nine months, driven by improved client confidence and stronger demand across local markets and Mainland China. New orders from Mainland China expanded for the first time in a year, helping to offset weaker demand across international markets.

The rate of output growth reached a one-year high as higher overall sales led to a sustained upturn in production. Despite improved order intakes, firms were able to work through their existing orders for the tenth month in a row, albeit at a slower rate.

Employment returned to growth in October, though the rate of job creation was only fractional. Companies also raised their purchasing activity for the first time since January in response to improved sales, leading to increased holdings of inputs for the fifth consecutive month.

On the price front, total input costs rose at a softer rate in October, broadly in line with the series average. Nevertheless, firms partially passed on higher expenses to clients, with the rate of charge inflation reaching the most pronounced level in 12 months.

Delivery times for purchased items lengthened again, extending the current period of deteriorating vendor performance to five months, though the rate of deterioration was only marginal and the softest since June. Firms mentioned shipping delays as a key factor.

The outlook for business activity over the coming year remained downbeat among private sector firms. The level of pessimism deepened from September but was less pronounced than the average seen over the course of 2025 so far. Negative sentiment was often linked to weak global economic conditions, a preference for online consumption, and the long-term impact of US trade policy.

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