Hong Kong: PMI deteriorates in April but continues to suggest strong economic activity
The S&P Global Purchasing Managers’ index (PMI) fell to 52.4 in April from March’s 53.5. Consequently, the index remained above the 50.0 no-change threshold, pointing to a continued, albeit moderating, improvement in private sector operating conditions from the previous month.
April’s reading was driven by slower growth in output and new orders. However, employment increased at the fastest pace in over two years, while business sentiment was positive and new exports rose. Looser pandemic restrictions together with the reopening of the border with the mainland continued to buoy activity. Amid stronger demand, output prices rose at the fastest pace in over a decade.
Andrew Harker, economics director at S&P Global Market Intelligence, said:
“Rates of expansion showed signs of softening from the rapid paces in the immediate aftermath of the reopening of the economy, but this was probably to be expected. Growth will now hopefully settle at a more sustainable level, though there is pressure coming on demand from rapid price rises.”