Hong Kong: Manufacturing PMI dips marginally in July
The IHS Markit Manufacturing Purchasing Managers’ Index (PMI) fell to 51.3 in July from June’s 51.4. As a result, the index remained above the 50-threshold, but pointed to a moderating improvement in business conditions from the previous month.
The slight moderation was predominately due to falling employment levels due to rising wage costs. Nevertheless, output and new orders were relatively unchanged accelerating slightly over the previous month.
Commenting on the latest reading, Jingyi Pan, economics associate director at IHS Markit, noted:
“Demand and output growth accelerated, which had been positive signs, although foreign demand appeared to have softened once again as COVID-19 disruptions remained a prevalent issue abroad. Price pressures also persisted for Hong Kong SAR private sector firms.”