November PMI rises sharply

Business seems to be improving in Hong Kong.

The HSBC Hong Kong Purchasing Managers Index rose to 52.2 in November from 50.5 in October. The apparent improvement in business conditions was due to solid growth in both output and new orders reported by firms.

A reading above 50 means an expansion in manufacturing activity, while a reading below signifies a contraction.

HSBC said a strong rebound in mainland demand contributed to faster job creation and wage growth in November. The downside is that inflationary pressures are increasing.

The HSBC PMI is calculated using indices that measure changes in output, new orders, employment, suppliers' delivery times and stocks of goods purchased. It is based on a survey of about 300 companies prepared by Markit Economics.