Hong Kong: Private-sector PMI shows improvement in March
The S&P Global Hong Kong SAR Purchasing Managers’ Index (PMI) rose to 50.9 in March from 49.7 in February. As a result, the index moved above the 50.0 no-change threshold, and signaled an improvement in private sector operating conditions compared to the previous month.
The primary drivers behind the latest PMI improvement were the expansion of new orders for the first time year-to-date and the acceleration in employment and inventory levels. Moreover, the rise in new work inflows enabled a less pronounced fall in business activity. However, new business from abroad and Mainland China continued to contract, amid a reduction in tourist demand and soft external conditions.
Input prices rose at the slowest pace since March 2021 due to softer purchase costs and wage increases, while output price inflation experienced an uptick for the first time in eight months. Finally, business sentiment remained weak, with firms still concerned about subdued economic conditions and heightened competition posing potential challenges to sales in the upcoming year.