The S&P Global Hong Kong SAR PMI rose to 51.2 in October 2025 from 50.4 in the previous month, marking a third consecutive month of expansion in private sector activity and the fastest pace since November 2024. Growth was driven by the sharpest rises in output and new orders in a year, with demand from China rising for the first time in 12 months, offsetting weaker orders elsewhere. Firms expanded employment and buying levels, the latter for the first time since January, while continuing to clear backlogs for a tenth month. Supplier performance worsened for a fifth month, though only marginally. Input costs rose at a slower pace amid more stable wage growth, prompting firms to lift selling prices modestly for a fourth straight month - the fastest rate of charge inflation in a year. Despite these improvements, business confidence remained subdued, with pessimism linked to weak global demand, shifting consumer preferences toward online shopping, and lingering effects of U.S. trade policy.