Hong Kong: PMI moderates in June
The S&P Global Purchasing Managers’ Index (PMI) fell to 52.4 in June from May’s 54.9. As such, the index remained above the 50.0 no-change threshold, pointing to a continued, albeit moderating, improvement in business conditions from the previous month.
The deceleration was driven by slower growth in output and new orders due to niggling Covid-19 disruptions and
lower consumer confidence caused by the latest Omicron wave. Output price inflation rose to a five-month high, while the rate of expansion of input prices decreased. In spite of easing economic momentum, employment levels increased.
Commenting on the latest PMI reading, Laura Denman, an economist at S&P Global, noted:
“Should the pandemic continue to stabilize and restrictions ease, we could hope to see growth momentum across Hong Kong SAR’s private sector rebound. That said, downside risks to growth, including inflationary pressure driven by purchased items, remain.”