The rate of expansion picked up slightly, as growth of output and new business gathered pace and companies recruited extra staff. The seasonally adjusted Purchasing Managers' Index (PMI) registered 53.4, up slightly from 53.1 in May. Business activity increased for the thirteenth consecutive month, as companies continued to benefit from improved market conditions and the subsequent rise in new order volumes.

Output expanded substantially since the previous month, and at a faster rate than in May. New business also increased for the thirteenth month running, with many attributing the expansion to increased promotional expenditure and the success of this in obtaining new contracts.

The improved performance of the Hong Kong economy resulted in further growth of private sector employment in June. Staffing levels rose for the fifth month running. Moreover, despite easing slightly on one month ago, employment continued to increase at a solid rate.

Meanwhile, the growth rate of the global manufacturing economy remained close to the record pace seen in June's PMI survey. At 56.5, down from 57.6 in May, the Global Manufacturing PMI, a composite index produced by JPMorgan and NTC in association with ISM and IFPMM, posted a reading above the neutral mark of 50.0 for the twelfth consecutive month. The US was again the principal growth engine of the worldwide manufacturing economy.

The information in this article is provided by NTC Research, publishers of the Purchasing Manager's Index (PMI) at www.ntc-research.com.  For further information  regarding the Hong Kong Purchasing Manager's Index contact: Paul Ng, Deputy Chairman, The Chartered Institute of Purchasing & Supply Hong Kong, Tel: (852) 9383 1863 e-mail: paulng@attglobal.net