Hong Kong: PMI rises in October
November 3, 2022
The S&P Global Purchasing Managers’ Index (PMI) came in at 49.3 in October, up from September's 48.0. As such, the index remained below the 50.0 no-change threshold, signaling a continued deterioration in private sector operating conditions from the previous month.
October’s reading was a reflection of softer contractions in output, demand and export orders. In contrast, employment fell at the fastest pace in nearly two years due to redundancies and resignations, while purchasing activity fell at a quicker pace. Covid-19-related shipping delays led to supply constraints, while price pressures intensified and business sentiment was downbeat. Finally, export orders from mainland China fell at a faster pace, amid the country’s ongoing Covid-19 restrictions.
Jingyi Pan, economics associate director at S&P Global Market Intelligence, said:
“Weaker economic conditions and lingering virus impacts continued to weigh on the performance of Hong Kong SAR firms despite recent easing of Covid-19 border restrictions. […] Should further stabilisation of local Covid-19 conditions materialise in the near-term, improvement in domestic activity may be anticipated.”