Hong Kong: PMI picks up in May
The IHS Markit Hong Kong SAR Purchasing Managers’ Index (PMI) jumped to 52.5 in May, from 50.3 in April, marking the highest reading since February 2014. As a result, the PMI was above the critical 50-threshold for the fourth consecutive month, suggesting that operating conditions in the Hong Kongese private sector improved in May.
The uptick came after restrictions were eased at end-April, with output reporting the fastest expansion since February 2018. In addition, new orders expanded thanks to a better external environment, with business from abroad expanding for the first time since March 2019. However, the improvement did not reflect itself in the labor market, with employment levels receding for the first time in four months, leading to an increase in backlogs of work. Meanwhile, supply constraints supported a rise in input costs, which were promptly passed on to customers.