Hong Kong: PMI rises in March, remains in contractionary territory
April 6, 2017
The Nikkei Hong Kong Purchasing Managers’ Index (PMI) released by IHS Markit inched up to 49.9 in March from 49.6 in February, edging more closely to the 50-point threshold that separates contraction from expansion in the business environment but remaining in contractionary territory for another month.
The reading indicated broadly stagnant operating conditions in March, and the increase was largely due to the first output growth recorded in two years and an increase in purchasing activity. However, holding the index below the 50-point threshold was a fall in total new business and a fall in the amount of outstanding work due by firms. While salaries rose in March, firms reduced selling prices for a second month. Moreover, expectations for the level of output in the coming year remained downbeat.
Author: Christopher Thomas, Economist