Hong Kong: PMI eases slightly in June
The IHS Markit Hong Kong SAR Purchasing Managers’ Index (PMI) ticked down from 52.5 in May, to 51.4 in June. As a result, the PMI remained above the critical 50-threshold for the fifth consecutive month, suggesting that operating conditions in the Hong Kongese private sector improved in June.
The slight dip in the headline PMI reading was mainly the result of weaker expansions in output and new orders relative to the previous month in June. Moreover, weaker demand and slower production kept a lid on firms’ hiring activity in June, while supplier delivery times increased notably, particularly due to shortages of raw materials and shipping delays.
Commenting on the latest reading, Jingyi Pan, economics associate director at IHS Markit, noted:
“Broadly, private sector firms remained optimistic with regards to output in the next 12-months in June, which is a positive sign. IHS Markit forecasts GDP to grow 6.8% in 2021.”