Hong Kong: PMI deteriorates in December
January 5, 2022
The IHS Markit Purchasing Managers’ Index (PMI) fell to 50.8 in December from November's 52.6. Consequently, the index remained above the 50-threshold, but pointed to a moderating improvement in business conditions from the previous month.
The weaker expansions was predominately the result of softer growth in output and new orders, while headcounts fell at a more rapid pace in December relative to the previous month. Moreover, supply constraints lingered, while price pressures counted to mount in December, which led to a stark rise in backlogs of work.
Commenting on the latest PMI reading, Jingyi Pan, an economist at IHS Markit, noted:
“Overall business confidence improved into the end of year with business confidence amongst Hong Kong SAR private sector firms jumping to a four-month high. IHS Markit forecasts for Hong Kong SAR’s GDP to expand by 3.2% in 2022 following a 6.6% rise this year.”
Author: Steven Burke, Economist