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Hong Kong PMI April 2024

Hong Kong: Private-sector operating conditions improve at slower rate in April

The S&P Global Hong Kong SAR Purchasing Managers’ Index (PMI) fell to 50.6 in April from 50.9 in March. As a result, the index remained above the 50.0 no-change threshold, but signaled a softer improvement in private-sector operating conditions compared to the previous month.

New orders declined marginally due to heightened competition and subdued economic conditions, with new business from abroad and mainland China decreasing significantly. Moreover, there was a reduction in the level of outstanding work for the seventh consecutive month. More positively, business activity increased and employment levels rose for the third month in a row.

On the pricing front, April saw the first decline in purchase costs since September 2020, attributed to the strengthening of the Hong Kong dollar. Consequently, selling price inflation also softened. Business sentiment among firms remained pessimistic, particularly in the wholesale and retail sectors, driven by concerns over rising competition and subdued economic conditions, although the level of pessimism was less pronounced than the series’ average.

On the outlook, Jingyi Pan, economics associate director at S&P Global Market Intelligence, said:

“The latest growth appears to be on shaky ground, with forward-looking indicators, including the New Orders Index that registered a decline in April, hinting at a softening of conditions ahead.”

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