The private sector in Hong Kong continued to expand in May, and at a faster pace, the latest survey from Markit Economics showed on Thursday with a services PMI score of 52.5.
That’s up from 50.3 in April and it moves further above the boom-or-bust line of 50 that separates expansion from contraction.
Business activity recorded a solid improvement in May, supported by the further easing of COVID-19 restrictions at the end of April. Although some firms continued to be affected by lingering COVID-19 implications, the improvement in output at the fastest pace since February 2018 was a positive sign.
Driving the rise in activity was an improvement in order book volumes. Specifically, new business from abroad rose for the first time since March 2019 and this included new business from Mainland China which saw growth after declining for three years for a row. The stabilization of COVID-19 conditions was widely cited as a reason contributing to the inflow of new business.