Standard & Poor's Global Hong Kong May PMI rose to 50.4, returning to expansion territory.

Standard & Poor's Global announced that, after seasonally adjusted, the Hong Kong Purchasing Managers Index rose to 50.4 in May, higher than April's 48.6. This is the first time in 3 months that it has returned to the expansion range above 50, indicating that the business environment has regained momentum, driven by a slight increase in new orders. New export orders for companies in May saw substantial growth, with the expansion rate accelerating due to new product launches. However, intense competition and weak local demand have put pressure on overall sales. Operating costs for businesses remain high, with procurement prices rising to the highest level in four and a half years, particularly for fuel-related products. Some companies interviewed have introduced discounts to stimulate sales, resulting in a narrower overall increase in output prices compared to April. Employee costs have moderately increased, with the smallest increase since March.