S&P Global announced that Hong Kong’s Purchasing Managers’ Index (PMI) grew to 50.4 in May from the previous reading of 48.6 after seasonal adjustment, indicating that the business environment in the Hong Kong SAR regained expansion although the improvement was modest.

During the period, export trade recorded steady growth, leading to a slight increase in new orders and supporting the first expansion in business activity in three months. Although business sentiment remained bleak, it eased to the lowest level in three months. On prices, purchase prices swelled, sending overall input costs higher. Output prices were also adjusted upward, though the pace of increase moderated slightly compared with the previous month s marked rise.

New orders returned to expansion territory in May, though the seasonally adjusted index was only marginally above the neutral 50 mark. Surveyed companies generally noted that new product launches supported order growth, while others pointed to intense competition and weak local economic conditions as weighing on overall sales.

In a nutshell, goods and services from enterprises gained further favor in overseas markets, driving growth in total new orders. In fact, export orders posted actual growth in May, marking the most outstanding performance in three months.

AASTOCKS Financial News