Hong Kong's economic expansion picked up in October from a 14-month low the previous month, as output and new orders gathered pace, the latest Purchasing Managers' Index (PMI) showed on Monday.
Private sector employment increased for a ninth consecutive month - the longest period of job growth in three-and-a-half years - although the pace of job creation was slower than a month earlier, the survey said.
Hong Kong is struggling with stubbornly high unemployment of 6.8 percent.
"Average wages and salaries were boosted as a result of the improved buoyancy of the labour market, as firms offered higher remuneration's to retain staff," the compiler of the survey said in a statement.
The seasonally adjusted PMI rose to 52.9 in October up from 52.2 in September and down from 53.5 in August.
October's rise the 17th successive month of economic expansion. A reading above 50 indicates the economy is growing.
The survey compares business conditions with a month earlier based on data from 300 Hong Kong companies in manufacturing services, retail and construction.
Output prices rose last month as firms passed higher raw material costs, including oil and steel prices, on to clients by raising their charges.
"However, inflation of charges remained below that of costs, suggesting a further squeeze of profit margins," the survey said.
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