The IHS Markit June PMI for HK dropped to 51.4 from 52.5

And, the familiar themes that have been consistent in PMI releases the past days are there in HK too:

  • Lengthening supplier lead times were recorded for a second straight month after a brief improvement in April.
  • The rate at which delivery times rose was the fastest since February.
  • Over and above the shortage of raw materials and shipping delays, firms reported labour constraints also contributing to the longer lead times.
  • Price pressures continued to rise for Hong Kong SAR private sector firms, as overall input prices increased for the ninth straight month, albeit at a slower rate. Both wage and purchase costs increased, inducing firms to continue sharing these cost burdens with their clients

I've been pointing this out, as have the Bank of Canada only last night: Indicators of capacity pressures and labor shortage intensity have increased