The S&P Global Purchasing Managers’ Index (PMI) fell to 52.4 in June from 54.9 in May. As such, the index remained above the no-change threshold of 50.0, indicating a continued, albeit modest, improvement in business conditions from the previous month.
The slowdown was driven by slower growth in production and new orders due to minor disruptions due to Covid-19 and
decline in consumer confidence caused by the latest wave of Omicron. Output price inflation surged to a five-month high, while input price growth slowed. Despite the weakening of the economic momentum, the employment rate has increased.
Commenting on the latest PMI data, Laura Denman, an economist at S&P Global, said:
“If the pandemic continues to stabilize and restrictions are eased, we can hope for a recovery in private sector growth in Hong Kong SAR. However, downside risks to growth, including commodity-driven inflationary pressures, remain.”
FocusEconomics Consensus Forecast experts predict that the economy will grow by 1.0% in 2022, which is 0.1 percentage point lower than the previous month’s forecast. In 2023, the panel sees growth at 3.8%.