FX.co ★ Hong Kong Private Sector Contracts the Most in 5 Months

The S&P Global Hong Kong SAR PMI edged up slightly to 49.2 in September 2026 from 49.1 in August, but remained below the 50.0 threshold, signaling a second consecutive month of contraction in private-sector activity. It was the fastest pace of decline since April, as both new orders and output fell for a second month amid a difficult economic environment.

In contrast, foreign sales increased for the first time in three months and at the sharpest rate since May. Employment continued to shrink, registering the steepest drop in almost six-and-a-half years.

Purchasing activity, however, rose and supported a further build-up in inventories, which have now increased in 15 of the past 16 months. Suppliers’ delivery times lengthened, reflecting higher transportation costs.

On the price front, input costs climbed, driven by more expensive raw materials, while output price inflation eased as firms offered discounts to stimulate demand and support sales.

Finally, business confidence deteriorated to its weakest level since 2020, amid higher tariffs, intensifying competition, and persistently challenging operating conditions.