Manufacturing output slows in Q1 as producer prices surge

Production rose 3.1% in Q1, whilst producer prices jumped 17.7%.

Hong Kong’s manufacturing sector recorded modest output growth in the first quarter (Q1) of 2026, whilst producer prices rose at a significantly faster pace, according to provisional data from the Census and Statistics Department (C&SD).

The index of industrial production for manufacturing industries increased 3.1% year on year (YoY) in Q1 2026, easing from a 5.8% rise in the previous quarter.

In contrast, the producer price index for manufacturing rose 17.7% YoY, accelerating from 9.5% in Q4 2025.

By industry, output growth was led by the metal, computer, electronic, and optical products, machinery and equipment segment, which rose 6.6%. The food, beverages, and tobacco industry increased 2.1%.

Declines were recorded in the textiles and wearing apparel industry, which fell 4.7%, and the paper products, printing, and reproduction of recorded media industry, down 2.6%.

On a seasonally adjusted quarter-on-quarter (QoQ) basis, manufacturing output fell 2.6% in Q1 2026 compared with Q4 2025.

In the waste management sector, output in sewerage, waste management, and remediation activities fell 1.6% YoY, whilst producer prices increased 3.8%.

C&SD said the index of industrial production measures changes in output volume after adjusting for price effects, whilst producer price indices track changes in prices received by producers for goods and services.