S & P Global's Global Hong Kong Purchasing Manager Index (PMI) has been adjusted and fell below 50.0 to hold a flat point, showing that the private economy has reduced business activities for the first time this year.
Comprehensive Hong Kong Economic Daily and Bloomberg News reported on Thursday (August 3) that the S & P global PMI index in Hong Kong dropped from 50.3 last month to 49.4.The economic recovery after the epidemic is slowing.The index higher than 50 indicates the expansion, and less than 50 means shrinking.
The latest data from S & P Global shows that Hong Kong's private economic prosperity reverses in July.As the number of new orders from rising to decline, Hong Kong companies have reduced output, but the business from overseas and mainland China still increases. Therefore, the overall decline in business activities is mild.However, when the price pressure intensified in July, Hong Kong companies seemed cautious about material procurement and human configuration.The industry's confidence in business prospects was less than last month, and the overall optimism fell until November last year.
The demand for the Hong Kong market has reproduced shrinkage. Due to the reduction of business confidence, the optimism fell to a new low of eight months.The industry is worried about the prospects and dilutes the expectations of the economy.With the decline in new orders and business volume, the company has reduced procurement, the highest decline in one year, but because the purchase volume and usage are similar, the inventory level has not changed much.
In the second half of the year, the cost pressure faced by private enterprises in Hong Kong is increasing day by day.The price of raw materials, transportation costs, and employee salary rose at the same time. Under the pinch of procurement and wage costs, the overall investment costs soared significantly.It is seen that the company then increased the price to pass the cost burden to the customers, and the price increase accelerated compared to the previous month, which was higher than the average level in one year.
Pan Jingyi, deputy director of the S & P Global Caizhi Economic Research Department, said that the growth momentum of restarting the stimulation of private enterprises in Hong Kong seems to be exhausted early in the second half of the year.The latest PMI data shows that new orders have risen from rising and falling, which leads to the shrinking of business activities, but after all, the speed of the prosperity is mild, and the export demand from overseas and mainland China is still expanding, and it will continue to support corporate operations.Not only does the overall business environmental turn, but at the same time, the price pressure is also heating up again. This situation is likely to further suppress business confidence and affect the market's demand for goods and services in the next few months.
