The private sector in Hong Kong continued to contract in December, albeit at a slower rate, the latest survey from S&P Global revealed on Thursday with a PMI score of 49.6.
That’s up from 48.7 in November, although it remains beneath the boom-or-bust line of 50 that separates expansion from contraction.
Business activity in the Hong Kong SAR private sector improved in December, buoyed by the easing of COVID-19 restrictions which also enabled lead times to shorten. Although slight, the rise in activity marked the first expansion of private sector output since August.
Demand remained subdued, however, with overall new orders shrinking on the back of deteriorating economic conditions. New orders from Mainland China also fell as a result of COVID-19 disruptions while weaker global conditions weighed on foreign demand more broadly, according to panelists.