The private sector in Hong Kong experienced continued growth in January, though at a slightly reduced rate, as indicated by the latest survey from S&P Global, which reported a PMI of 51.0. This is a slight decline from December's 51.1 but remains above the critical threshold of 50, demarcating expansion from contraction.
The private sector's business activity saw growth for the fourth consecutive month, albeit at the slowest rate observed during this period. The wholesale and retail industries led performance in January, while notable decreases in manufacturing production and construction output constrained overall growth.
New orders showed only marginal increases in January, with the growth rate significantly lower than the 18-month peak reached in October. Respondents mainly attributed this to restrained business and consumer spending. Additionally, new business from Mainland China decreased to its lowest level since April 2022. Export sales declined for the third consecutive month, marking the swiftest reduction since September 2024.
