Hong Kong: PMI increases to the highest level since August in November
The IHS Markit Purchasing Managers’ Index (PMI) rose from 50.8 in October to 52.6 in November. Consequently, the index increased further above the 50-threshold, and pointed to a stronger improvement in business conditions from the previous month.
The healthier reading mainly reflected a more robust increase in new orders and output in November relative to the previous month, as firms cited easing weather disruptions contributing to the improvement in demand conditions. That being said, external demand remained weak, which was tied to ongoing supply disruptions and Covid-19 related setbacks. Moreover, employment levels dipped again in November, 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:
“Growth momentum in Hong Kong SAR picked up midway through Q4 amid low COVID-19 case counts, which had been a positive sign for the region. External demand however remained subdued amid signs of supply constraints.”