The S&P Global Hong Kong SAR PMI rose to 50.4 in May 2026 from 48.6 in April, indicating a return to expansion in private-sector activity after two consecutive months of contraction. Overall business activity increased for the first time since March, supported by a modest rise in new orders and a solid rebound in external demand, with export sales recording their strongest growth in three months.
Employment edged lower as firms generally chose not to replace departing staff, while backlogs of work continued to decline, though at a slower pace. Purchasing activity expanded, but more gradually, and supplier delivery times lengthened for the first time in three months, partly reflecting shipping disruptions related to the conflict in the Middle East.
Cost pressures remained high, with input prices rising at the fastest rate since December 2021. Companies continued to increase their selling prices, although the pace of output price inflation eased compared with April. Business confidence stayed in negative territory but improved to its highest level in three months.
