Strong expansion in Hong Kong's private sector shown by HSBC PMI
Reuters in Hong Kong
The HSBC purchasing managers index (PMI) for last month, released on Wednesday, signalled the strongest improvement in business conditions in Hong Kong’s private sector since January.
The reading improved markedly to 52.1 from 50.1 in October. A survey reading above 50 indicates expansion. A figure below 50 denotes contraction.
New business received by private-sector companies expanded at the fastest pace for 10 months. New orders from mainland China expanded for the first time since January.
Private-sector output expanded for the third consecutive month, and the rate of growth accelerated to a 10-month high.
Employment contracted for the ninth consecutive month, but the latest round of job losses remained moderate.
Overall input prices faced by private-sector companies continued to increase, and the latest rise in costs reflected higher purchasing prices. However, the rate of input price inflation was moderate and at the weakest pace since August.
“Hong Kong’s November PMI posted the strongest gain since January 2013, led by sharp gains in output and new orders. New business from China also expanded for the first time in 10 months, suggesting improving mainland demand is filtering through to local markets,” said Qu Hongbin, HSBC’s chief China economist.
“This will likely improve business conditions further in the coming months through higher exports abroad and increased demand at home.”