S&P Global Hong Kong October PMI Rises to 50.2; Gary Ng Expects Mild Expansion to Persist in Coming Months

The S&P Global Hong Kong purchasing managers' index (PMI) rose to 50.2 in October, with business activity returning to growth for the first time in 3 months. Gary Ng of Natixis believes that strong trade demand driven by artificial intelligence means the PMI can stay at a mild expansion level close to 50 in the coming months if demand persists, though it may contract slightly again in early next year. He has raised his forecast for Hong Kong's economic growth this year from 4.3 per cent to 4.8 per cent, and expects growth of 3.8 per cent next year.