Hong Kong's private sector expanded for a sixth straight month in January, with growth momentum strengthening as new business growth accelerated, S&P Global said Wednesday.

The seasonally adjusted Hong Kong SAR Purchasing Managers' Index rose to 52.3 from 51.9 in December 2025, signalling a faster improvement in operating conditions.

Business activity increased at a solid pace, unchanged from December, supported by a marked rise in new orders, which was the second-strongest since April 2023.

Backlogs of work rose for a second month, while employment edged lower as firms cited the non-replacement of voluntary leavers.

New export orders climbed at the fastest rate since February 2023, with demand improving from overseas markets and mainland China.

Despite stronger demand, firms remained cautious about the year-ahead outlook, citing intense competition, U.S. trade policy, and subdued global conditions.