The S&P Global Hong Kong SAR PMI fell to 49.3 in March 2026 from February’s 35‑month high of 53.3, signaling the first contraction in the private sector since the previous July as new orders weakened under the impact of the Middle East conflict. New orders posted their sharpest decline in nine months, abruptly ending a five‑month run of solid expansion. In turn, both output and overall new business also contracted.
Overseas sales registered a comparable setback, bringing a four‑month period of growth to a close. By contrast, demand from mainland China continued to strengthen for the sixth straight month, although the pace of growth moderated.
On the price front, input cost inflation eased to its weakest rate since September of the previous year, while purchasing prices dropped to a seven‑month low. Looking ahead, business confidence improved slightly in the latest survey period, underpinned by firms’ expectations of stronger customer demand.
