Hong Kong PMI expands for six consecutive months

Hong Kong's  private sector growth recorded a solid rise in January, with the S&P Global purchasing managers' index climbing to 52.3 from December's 51.9, reflecting the continued improvement of the business environment.

In December, companies reported a sixth consecutive monthly rise in business activity, remaining above the critical 50-point threshold.

S&P Global noted that rising new orders drove a faster expansion in business activity. New export orders rose at the sharpest rate in nearly three years, reflecting a broader increase in sales. 

It mentioned that purchasing activity expanded at a quicker pace, while the level of outstanding business also increased, to suggest that activity levels will continue to rise in the first quarter to meet customer demand. 

Besides, raw material prices rose significantly, prompting companies to raise output prices, but the rate of increase slowed.

However, firms remain downbeat regarding future output expectations while US trade policy, intense market competition and subdued global economic conditions could all weigh on future performance.