The S&P Global Hong Kong SAR PMI rose to 50.2 in October 2026 from 49.2 in September, moving back above the 50 no-change threshold and indicating the first expansion in private-sector activity in three months. The recovery was underpinned by a slight increase in new orders, ending a two‑month period of contraction, while new business from mainland China grew at its fastest pace in eight months. New export orders also increased for a second consecutive month, though the rate of growth moderated.
In response, firms stepped up purchasing activity and built up input inventories, and supplier delivery times shortened for the first time in six months. Meanwhile, employment declined for a seventh straight month, although the pace of job cuts eased from September’s six‑and‑a‑half‑year peak.
Purchase cost inflation accelerated to a five‑month high and stood among the steepest rates recorded over the past five years. Rising input and fuel costs also drove selling prices higher. Finally, business confidence weakened to its lowest level since August 2020, reflecting growing concerns over economic conditions and geopolitical tensions.
