Hong Kong's PMI rises to 53.3 in February

Hong Kong's private sector business condition has improved for a seventh consecutive month, with the S&P Global Hong Kong purchasing managers index posting 53.3 in February, up from 52.3 in January, and the rate of growth was the strongest in just under three years.

New order inflows in the Hong Kong private sector economy increased for the fifth month in a row in February, thanks to improved tourist numbers and clients' budgets, and new sales channels had boosted across local and international markets. New orders from both mainland and international markets also rose sharply during February.

Besides, higher sales drove output upturn, hitting a three-month high, but capacity pressure persisted in Hong Kong's private sector. Firms saw an increase in outstanding business for a third consecutive month, the highest in 12 years. Staffing levels also increased, though job growth was slight.

Price pressures eased as firms faced softer cost increases in February. However, private sector prices in Hong Kong rose, the highest in nearly two-and-a-half years, as some passed higher expenses to clients to protect margins.

February business activity outlook remained downbeat, mainly due to intense competition and subdued local demand, but was less pessimistic than in January, with signs of firmer demand across international markets.

Gloria Leung