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Technology Stocks : Semi Equipment Analysis -- Ignore unavailable to you. Want to Upgrade?

To: StanX Long who wrote (11946)	10/2/2003 1:16:46 AM
From: StanX Long	Respond to of 95385

HK economy grew for 4th straight month in Sept-PMI Thursday October 2, 12:36 PM By Charlie Zhu and Azhar Sukri HONG KONG, Oct 2 (Reuters) - Hong Kong's economy improved for the fourth straight month in September, showing its strongest level of business activity in three years, as domestic and overseas demand improved, the latest Purchasing Managers' Index (PMI) survey shows. The September PMI hit 54.8, its highest reading since June 2000, up from 53.5 a month earlier and indicating further improvement in business confidence and outlook, the Chartered Institute of Purchasing & Supply, a joint compiler of the index, said in a statement. A reading above 50 signals economic expansion. "After going through such terrible time earlier in the year, it is particularly encouraging to note the resilience strength of the Hong Kong economy," the institute said. Economists said the latest data was a further sign that the long ailing Hong Kong economy may be on the road to recovery. "Overall, it is consistent with other indicators that show that the economy is recovering. Unemployment has peaked, deflation is easing and the stock market is performing well," said Jun Ma, senior economist at Deutsche Bank in Hong Kong. Expectations of a recovery have contributed to an unusual strengthening of the Hong Kong dollar against the U.S. dollar since last week. The local currency stood at HK$7.7350 per dollar on Thursday morning, far stronger than its pegged exchange rate of HK$7.80 per greenback. The benchmark Hang Seng Index of leading shares climbed more than two percent in morning trade and has gained more than 36 percent since its late April lows, when the deadly SARS virus was stalking the territory. Property prices, which have plunged more than 65 percent since their peaks in 1997, have also begun to show signs of recovering with flat sales picking up slightly. The real estate market is a key engine for growth and major influence on consumer confidence in the territory. The PMI survey, jointly conducted by NTC Research, polls 250 companies across different sectors representative of the economy. Its results are adjusted to remove seasonal patterns. Economic prospects have improved in recent months, especially after Beijing relaxed curbs on individual travel by mainland citizens. Retailers and hoteliers are bracing for an influx of high-spending mainland tourists. Hammered by the SARS outbreak, Hong Kong's economy contracted in the first half of 2003, but the government has since become more confident. It recently raised its forecast for gross domestic product growth this year to 2.0 percent from 1.5 percent. The institute said most companies attributed increased business activity to stronger demand, with the manufacturing, services, construction and retail sectors all recording growth. Hong Kong companies reported that the volume of new business had increased for the fourth consecutive month in September, while the rate of expansion of new orders was the most significant for three and a half years, it said. The Hong Kong labour force increased throughout the third quarter, with the latest survey period seeing further modest growth of staffing levels, the institute said. Companies also reported that stocks had been replenished intentionally to meet the current and expected future needs of output, it said. Average input prices increased for the first time in six months in September, the institute said. Both staff and raw material costs rose. Higher prices for goods bought by businesses reflected increased fuel costs and stronger demand for certain raw materials, while average wages and salaries rose as a result of the recent strength of the labour market, it said. Hong Kong's unemployment rate slipped slightly to 8.6 percent in the three months to the end of August, its first decline since November, as the tourism revival helped create jobs. However, the latest survey data suggested a squeeze on companies' profit margins, as average charges declined again in September, it said.