Hong Kong Private Sector PMI2011-2021 Data | 2022-2023 Forecast | Calendar

The IHS Markit Hong Kong PMI rose to 47.8 in January 2021 from an eight-month low of 43.5 in December, signaling a moderation in the rate of deterioration after the heavy hit from the reintroduction of COVID-19 restrictions. Both output and new orders fell at softer paces, though in both cases the downturns were the second-steepest since August. At the same time, exports fell sharply, with sales from the mainland dropping further. Also, buying levels sank to a degree not seen since August, amid symptom of growing supply problems. Employment shrank fractionally, but in most cases, headcounts were kept steady. Meantime, suppliers’ delivery times lengthened the most since the survey began in 1998. As for prices, input cost inflation hit its highest in 2-1/2 years, on rising raw material costs and increased shipping fees. Output prices fell faster, however, amid tough competition and weak sales that led many firms to offer discounts. Finally, sentiment remained negative.

The IHS Markit Hong Kong PMI plunged to 43.5 in December 2020 from 50.1 a month earlier. This was the weakest reading since April, amid the fourth wave of COVID-19 infections that prompted a tightening of social distancing measures. Output and new orders both fell at the sharpest rates since April; while export sales, including new business inflows from mainland China, fell at a markedly increased rate, reflecting intensifying lockdowns in some key export markets. Also, job losses gathered pace to the highest since April. On the cost front, prices paid for purchases rose at the joint-fastest rate seen over the past two years, due to growing supply constraints. The incidence of supplier delays was the highest recorded since the survey began in 1998. Meantime, average prices charged fell the most since July, as firms offered r discounts to stimulate demand. Finally, sentiment remained negative, though the degree of pessimism eased to the lowest since June 2019.

The IHS Markit Hong Kong PMI rose to 50.1 in November 2020 from 49.8 a month earlier. This was the highest reading since March 2018, as some of the COVID-19 pandemic restrictions were relaxed. New orders fell the least in the current 32-month sequence of fall, with demand from mainland China declining far softer than seen during the height of the pandemic, while buying levels were broadly stable. At the same time, output contracted modestly and employment shrank for a second straight month, amid a marginal decline in backlogs of work. Delivery times lengthened for an eleventh straight month due to reduced freight capacity and manpower shortages at distributors. Price trends diverged further, with input prices rising for a second straight month, lifted by higher paid prices for inputs and a renewed increase in wage costs. On the other hand, output charges fell further, though at the slowest rate in the current 17-month sequence of deflation. Finally, sentiment remained negative.

The IHS Markit Hong Kong PMI rose to 49.8 in October 2020 from 47.7 a month earlier. This was the highest reading since March 2018, as some of the COVID-19 pandemic restrictions were relaxed. Output fell the least in over 2-1/2 years and new orders shrank at the softest pace in four-month, with demand from mainland China falling the least in the current 30-month sequence of decline. Meantime, employment fell back into decline, amid reports of redundancies. Firms continued to scale back buying activity in response to weak demand. Consequently, stocks of purchases fell further, though at the weakest rate since June. Pressure on supplier capacity persisted, as indicated by a further sharp increase in delivery times. On the price front, overall input prices rose for the first time since June while output charges fell further. Finally, sentiment remained negative, though the degree of pessimism was the weakest since June 2019.