The key points from IHS/Markit on the HK PMI:
- Output and new orders fall at slowest rates for over two years
- Employment levels broadly stable
- Input cost inflation returns
Bernard Aw, Principal Economist at IHS Markit:
- "The Hong Kong SAR private sector showed signs of stabilisation in June as restrictions taken to limit the spread of the COVID-19 pandemic ease further.
- "Business activity and new orders both declined at the slowest rates since the first half of 2018 before the escalation of the US-China trade tensions. Private sector employment levels also stabilised while firms raised their purchasing activity for the first time in over two years.
- "However, survey data indicated that external demand, particularly from mainland China, is still weak. Firms also remained concerned about the long-term impact of the COVID-19 pandemic on economic activity. As such, the potential of a robust recovery in the Hong Kong economy relies on the strength of the upturn in the global economy in the coming months."
