FX.co ★ Hong Kong Private Sector Growth Nears 3-Year High

The S&P Global Hong Kong SAR PMI climbed to 52.3 in January 2026, up from 51.9 in December, marking the most rapid growth in the private sector since March 2023. This expansion is largely attributed to an uptick in new business inflows, with foreign sales escalating at their fastest rate since February 2023. Despite continued reductions in employment, the backlog of work increased for the second month in a row, with the pace of accumulation quickening. Although the reduction in jobs was minimal, purchasing activity saw an upswing, and supplier performance improved for the second straight month. On the pricing front, input costs rose due to increased raw material and staff expenses, although input inflation showed signs of easing. Conversely, output inflation saw a slight increase as companies reduced prices to boost sales. Looking forward, business sentiment has dipped to a five-month low, influenced by concerns over U.S. trade policies and fierce market competition.