Hong Kong: PMI pushes into positive territory in December
January 6, 2015
The HSBC Purchasing Managers’ Index (PMI) increased from 48.8 in November to 50.3 in December. As a result, the PMI pushed above the 50-threshold that separates contraction from expansion in business conditions. December’s result also marked a five-month high, suggesting that the effects of the political protests are starting to fade.
December’s figure reflected the first improvement in business conditions after a deterioration in the previous four months. Private sector output increased moderately and total new orders were up at the fastest pace since February. However, new business from Mainland China fell for the fifth straight month and employment levels declined in December.
HSBC analysts pointed out that, “Hong Kong’s economy ended the year on a brighter note with private sector new orders returning to growth after seven consecutive months of falling demand. However, external conditions remain challenging given weak economic data in the region including from Mainland China.”