Hong Kong: PMI continues to moderate in October
November 3, 2021
The IHS Markit Purchasing Managers’ Index (PMI) fell to 50.8 in October from September's 51.7. Nevertheless, the index remained above the 50-threshold, but pointed to a moderating improvement in business conditions from the previous month.
The weaker reading mainly reflected a softer increase in new orders and output in October relative to the previous month, as firms cited some weather disruptions contributing to the slight slowdown. Moreover, employment levels dipped marginally in October, while suppliers’ delivery times lengthened. On the price front, input prices continued to increase at a rapid pace, while output prices also rose.
Commenting on the latest PMI reading, Jingyi Pan, an economist at IHS Markit, noted:
“Supply constraints meanwhile continued to feature alongside the growth deceleration in October with suppliers’ delivery times deteriorating amid shortages and shipping issues, likewise leading to higher costs. At the same time, labor constraints appear to be present between the lower employment levels and higher wages reported.”
Author: Steven Burke, Economist