Hong Kong October PMI rises to 50.2, returning to expansion
S&P Global's Hong Kong October Purchasing Managers' Index rose to 50.2 from 49.2 in September, returning to expansion. New orders ended a two-month decline, though demand remains weak. Business confidence for the year ahead fell to a six-year low.
S&P Global's Hong Kong Purchasing Managers' Index (PMI) for October rose to 50.2, up from 49.2 in September, returning to expansion territory, according to a survey released on 4 November.
The survey showed new orders resumed expansion, ending a two-month decline, though industry players said market demand remained weak. New export orders increased for a second consecutive month, supported by companies launching new products. New orders from mainland China also rose further, recording their biggest increase in eight months.
Benefiting from order growth and the start of new projects, companies expanded production modestly, stepped up procurement, and reduced the pace of layoffs. Entering the fourth quarter, procurement material costs rose sharply, with purchase prices hitting a five-month high, while salary cost increases also widened.
S&P Global noted the survey sent cautious signals, with inflationary pressures intensifying and human resources policies affected. Companies worried about the economic environment and international situation, with business confidence for the year ahead dropping to its lowest level in more than six years.