According to a report released on Friday by S&P Global, the S&P Global Hong Kong SAR Purchasing Managers’ Index registered 53.9 in February, up from 51.2 in January, indicating a faster expansion in the private sector. This marks a second consecutive month of private sector expansion and the most rapid pace since May 2021.
The report stated that the private sector expansion in Hong Kong SAR picked up midway through the first quarter as companies benefited from the easing of COVID-19 restrictions. Higher demand boosted private sector output, leading to increased hiring and buying activities in February. Additionally, supply constraints eased as suppliers’ delivery time shortened, while overall input cost inflation softened.
The report noted that amidst the improvement in business activities, business confidence rose to a record level, with the Future Output Index pointing to a record level of business confidence among Hong Kong SAR private sector firms.
The report also highlighted that the volume of new orders from the Chinese mainland climbed at one of the quickest rates in the survey history, supporting a rapid expansion in private sector output, the quickest in 12 years. The level of business confidence notably soared to the strongest since the series began in April 2012, reflecting improved views on business activities in the next 12 months.