Hong Kong: Manufacturing PMI jumps to the highest level in over seven years
The IHS Markit Manufacturing Purchasing Managers’ Index (PMI) increased to 53.3 in August—the best reading since February 2014—after July’s 51.3. As a result, the index moved further above the 50-threshold, and pointed to a faster expansion in business conditions from the previous month.
The stronger reading was predominately due to faster increases in output and new orders relative to the previous month, while employment levels stabilized in August, after declining in May–July. Nevertheless, foreign demand remained weak as Covid-19 restrictions in China weighed on buying activity.
Commenting on the latest reading, Jingyi Pan, economics associate director at IHS Markit, noted:
“Both demand and output growth accelerated to multi-year highs, aided by the increase in economic and consumer confidence and supported by recent measures such as the distribution of the consumption vouchers. The overall outlook also improved noticeably amongst Hong Kong SAR private sector firms in August.”