Hong Kong: PMI reaches 10-month high in May
June 3, 2016
The Nikkei Purchasing Managers’ Index (PMI) released by Markit increased from April’s 45.3 to 47.2 in May, marking a ten-month high. Nonetheless, the PMI remains below the 50-threshold that separates contraction from expansion in business conditions where it has been since March 2015.
May’s figure reflected a slower deterioration in output caused by a weaker contraction in new orders. Moreover, the reduction in employment levels was only marginal in May compared to the previous month. However, the level of outstanding business decreased and purchasing activity fell further in May. While the prices for input goods remained unchanged, the prices charged by businesses recorded an additional drop. According to Markit, the private sector continued to operate under bleak conditions in May amid unfavorable global economic conditions and weak client demand.