PMI soars to an 11-year high of 54.9 in May: S&P Global

The growth was driven by reduced COVID disruptions.

Hong Kong’s S&P Global Purchasing Manager’s Index (PMI) soared to an 11-year high of 54.9 in May on the back of reduced COVID disruptions.

May also marked the second month of expansion for the private sector.

Apart from the stabilisation of COVID conditions and easing of restrictions, S&P Global said the distribution of consumption vouchers also contributed to boosting business activity in Hong Kong.

During the month, HK also saw an improvement in new orders which drove an expansion of workforce numbers and higher inventory levels.

Whilst there were several improvements in May, there were also reported deteriorations during the month like vendor performance. Suppliers’ delivery times also lengthened, said S&P.

Overall, S&P said sentiment in the private sector was positive.

“Hong Kong SAR economy is recovering strongly into the second quarter. The latest developments bode well for further improvements in business conditions,” Jingyi Pan, Economics Associate Director at S&P Global Market Intelligence, said.