Hong Kong: Private sector PMI eases in November
The S&P Global Purchasing Managers’ Index (PMI) fell to 48.7 in November from October’s 49.3. As such, 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.
Novembers reading was a reflection of faster contractions in output and new orders, amid a rise in domestic Covid-19 cases. Moreover, input cost inflation intensified, partly due to wage inflation. In contrast, new export orders declined at the softest pace in six months, supported by loosened travel restrictions. These looser restrictions also boosted business sentiment regarding the year ahead.
Jingyi Pan, economics associate director at S&P Global Market Intelligence, said:
“Early signs of improvements including a renewed growth of input acquisition and optimism were tracked by the PMI data to suggest the potential for better domestic activities ahead. It will be crucial to see overall demand show a turnaround for economic conditions to improve.”