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Hong Kong Industrial Production Sees Slower Growth in Q1

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Hong Kong Industrial Production Sees Slower Growth in Q1

Hong Kong's index of industrial production for manufacturing industries saw slower growth in the first quarter as an increase in output of the computers sector failed to offset a deceleration in the textile sector.

The figure increased 3.1% year over year to 107.7 in the first quarter of 2026, above the baseline of 100 set in 2015, according to data from the city's Census and Statistics Department released Friday

The performance decelerated from the 5.8% expansion to 109.5 recorded in the previous quarter. It also missed a forecast of 3.8% tracked by Trading Economics.

The corresponding producer price index jumped 17.7% year over year in the first three months of 2025, faster than the 9.5% rise in the previous quarter.

By major sector, output volume was driven by a 6.6% rise in the metal, computer, electronic and optical products, machinery and equipment industry to 92.2, but below the baseline of 100.

Miscellaneous manufacturing industries increased 5% to an index reading of 111.3.

The food, beverages and tobacco sector grew by 2.1% to 99.2, still below the baseline.

Conversely, output in the textiles and wearing apparel sector fell 4.7% year over year to an index of 69.3, the department said.

The paper products sector slipped 2.6% from the same period last year to an index reading of 87.9.

Hong Kong's sewerage, waste management, and remediation activities fell 1.6% in the first quarter, slower than the 2% decline recorded in the fourth quarter of 2025.

The corresponding producer price index jumped 3.5% year over year in the first three months of 2025, faster than the 0.2% rise in the previous quarter.

On a seasonally adjusted quarter-on-quarter basis, manufacturing production decreased 2.6% quarter on quarter, down from an increase of 1.3% in the previous quarter.

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