Hong Kong: PMI jumps back to positive territory in February
March 4, 2015
The HSBC Purchasing Managers’ Index (PMI) rose from 49.4 in January to 50.7 in February, which marked the highest reading in one year. As a result, the PMI jumped above the 50-threshold that separates contraction from expansion in business conditions.
February’s healthy upturn was mainly driven by large increases in output and new orders, which reached a one-year high. The negative notes were a deterioration in business from Mainland China and further cuts in staffing. Regarding price developments, both input costs and output charges rose slightly in February. HSBC analysts pointed out that, “looking ahead, rising backlogs may encourage firms to hire additional staff in upcoming months, particularly if the current run of new order growth is sustained and input cost inflation remains modest.”