Hong Kong Dec PMI 55.5 vs 56.2 in Nov - NTC Economics

The Hong Kong Purchasing Managers' Index (PMI) fell to 55.5 in December from a high of 56.2 in November, index compiler NTC Economics said.

However, the reading indicates that the economy is continuing to expand at a robust pace, it said, noting that the data also marks the thirty-sixth successive monthly improvement of business conditions in the private sector economy.
A figure above 50 indicates economic expansion while a reading below that points to contraction.

Underlying the robust operating conditions were strong monthly gains in both output and new business, which also fuelled employment growth, NTC Economics said.

The surveyed pointed to strong orders from China amid the country's rapid industrial growth.

"Growth of the Hong Kong economy was maintained at a robust pace in December. The positive demand environment was highlighted by strong gains in new orders, particularly from mainland China as ongoing industrial expansion continues," said Paul Smith, an economist at NTC Economics.

"Companies were suitably encouraged to raise employment at a solid clip, although rising demand for staff continued to underpin wage growth. Overall, the data suggest an improvement in the rate of GDP expansion at the end of 2007 which, given the recent turmoil in global financial markets, will be a considerable achievement." Simith added.

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