- No right to amend Basic Law for immigration control: Counsel
- Govt pledges caution over cross-border vehicle plan
- Nostalgia for British colonial rule ignores ongoing progress
- Budget supports elderly care
- Fool's gold
- HK retains title of most globalized economy for second year running
- Two lessons can be learnt from current CE Election
- The problem is not 'non-local' women but intermediaries
- CE refutes conflict of interest claims
- Right of abode appeal opens
|Email | Print | Share||Text Size|
Hong Kong’s private sector is bucking the downward trend seen elsewhere in Asia, recording growth for the first time in three months in July, according to HSBC’s survey on purchasing managers.
Business conditions across Hong Kong’s private sector improved last month with the HSBC PMI rising to 50.3 in July, up from 49.8 a month earlier, the latest survey by HSBC on purchasing managers showed on Friday.
A reading above 50.0 indicates expansion, while a figure below that level signals contraction. The July PMI reading was also the first reading above the 50 no-change threshold in three months, signaling a stabilization of conditions in the city, said HSBC.
July’s output and new orders sub-indexes expanded at 50.4 and 50.2 respectively compared with 49.2 and 50.3 in June. “New business from the mainland”, however, was registered at 46.8 last month over 46.5 previously, signaling continuous subdued business conditions with the city’s most important business partner, according to the bank.
- Secretary: Buildings Dept impartial
- Second military camp opens for local university students
- Leading triad figures, rural leaders snared in police operation
Despite the impact of the weak European and mainland demand continually weighing on sentiments, lower raw material prices, more favorable currency movements and resilient domestic demand are keeping businesses humming and job market conditions stable, said Donna Kwok, Greater China economist from HSBC.
“Most critically, wages are still rising, helping to underpin household demand and buying more time for growth until a soft mainland landing is secured,” said Kwok.
However, the wage hikes in Hong Kong grew at a slower pace in July, with the sub-index registered at 50.9 over June’s 52.4. At the same time, the sub-index for employment contracted for the third straight month, with a reading of 48.8 in July from 48.7 previously. HSBC indicated that respondents flagged the reduction in headcount remained modest, generally due to staff resignations.
Kwok commented that July’s PMI reading will bring some relief to investors as a promising start to the third quarter.
“However, the underlying strength of this turnaround has yet to be tested. Until the contraction of mainland new orders is stemmed, questions will remain over the sustainability of Hong Kong’s growth,” said Kwok.
On July 10, the city’s Financial Secretary John Tsang said Hong Kong should be able to attain GDP growth of 1 to 3 percent in real terms this year, barring any further blows to world financial markets.