Hong Kong: PMI inches up to a five-month high in July
August 5, 2014
The HSBC Purchasing Managers’ Index (PMI) increased from 50.1 in June to 50.4 in July. July’s print represented the highest level in five months. As a result of the monthly improvement, the PMI is moving further above the 50-threshold that separates expansion from contraction in business conditions.
July’s figure reflected that business conditions improved marginally, mainly due to increases in overall output and inventories, while employment and new orders contracted slightly. In addition, demand from Mainland China improved in July due to improving economic conditions. HSBC analysts pointed out that, “Hong Kong's economy is stabilising, although it is still not yet back to normal as the PMI for July only showed a marginal return to overall growth and new orders remained in contraction. Still, there was an encouraging rebound in new business from China, which could potentially be sustained given the improving economic data from the Mainland of late.”