Hong Kong: PMI records worst reading since November 2022 in July
The S&P Global Purchasing Managers’ Index (PMI) came in at 49.4 in July, down from June’s 50.3. July’s result marked the worst performance since November 2022. As a result, the index dropped below the 50.0 no-change threshold, signaling a deterioration in private-sector operating conditions from the previous month. The latest data indicates that the boost from the removal of Covid-19 restrictions at home and in mainland China has largely been exhausted.
July’s reading was driven by falls in new orders and output. Moreover, business confidence was the lowest in eight months, while firms reduced their purchasing activity and price pressures intensified. That said, overseas orders continued to grow—including those from the mainland—aided by the removal of travel restrictions.