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Hong Kong PMI October 2023

Hong Kong: Private-sector operating conditions appear muted in October

The S&P Global Purchasing Managers’ Index (PMI) fell to 48.9 in October from September’s 49.6. October’s result marked the worst reading since November 2022. As a result, the index fell further below the 50.0 no-change threshold, signaling a sharper deterioration in private sector operating conditions compared to the previous month.

In October, firms recorded lower new business—including from mainland China—while purchasing activity, inventory levels and employment also declined. Input cost inflation increased, though output prices rose at a slower rate as firms tried to boost sales.

Jingyi Pan, economics associate director at S&P Global Market Intelligence, said:

“[Most] concerning was the squeeze of margins at private sector firms, with overall input cost inflation rising further above that of charge inflation going into the fourth quarter. This could result in a paring back of investments and employment, which will not bode well for growth performance into the year-end. It will be important to see improvements in demand conditions in the months ahead to drive a renewal of both output growth and business optimism.”

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