PMI inches forward

Hong Kong's private sector recovers somewhat.

A rebound in output and a rise in employment have been identified as the reasons for the increase in Hong Kong’s Purchasing Managers’ Index (PMI) in October.

A report from Markit Economics and HSBC Bank said the seasonally adjusted PMI for the private sector increased to 50.5 in October from 49.6 in September, but remained below its long-run series average. A PMI reading above 50 indicates expansion in the sector while one below suggests a slowdown.

Private sector output increased during October, reversing the reduction in September. Private sector employment returned to growth in October, ending five straight months of job losses.

Input prices faced by companies increased for the third successive month, with both purchase prices and staffing costs increasing. Output prices also increased during October as firms passed higher costs on to clients by raising their charges.