Hong Kong's January PMI Rises to Two-Month High, Indicating Improved Business Conditions

Hong Kong's Purchasing Managers' Index (PMI) for January increased to 52.3, marking a 0.4 rise from the previous month and reaching a two-month high. According to RTHK, the index has remained above the 50 mark for six consecutive months, indicating ongoing improvements in the business environment. S&P Global noted that the rise in new orders has accelerated business activity expansion. The growth rate of new export orders reached its fastest pace in nearly three years, reflecting a broader increase in sales. Despite a significant rise in raw material prices, companies have adjusted their output prices, though the rate of increase has slowed. Purchasing activities have become more active as backlogged orders increase, suggesting that business activity will continue to grow in the first quarter. However, companies remain cautious about their business outlook for the coming year due to concerns over U.S. trade policies, intense market competition, and a sluggish global economy, which may pressure future production performance. Nonetheless, several companies have expressed confidence in the sustained prosperity of the local economy.