The local economy expanded at a rate of 2.8% year-on-yearfor the second consecutive quarter in Q1 2013, and indicators to date are showing a similar rate of expansion throughthe first half of 2013. More robust growth has been driven by wholesale and retail trade, resilient domestic demand and improved export growth. Exports, which began to stabilizein May and likely attesting to the slowdown in China, have although shown more stable growth of 6.1% year-on-year during the three months ended May. Challenges remain with slowing manufacturing and the recent credit crunch in China posing as growing threats to both the local economy and global recovery. The HSBC Flash China PMI registered below the 50.0 mark for two months in a row, dropping to 49.2 in May and then hitting a nine-month low of 48.3 in June. Meanwhile, Hong Kong PMI also hit its lowest level in eight months of 49.8 in May. Retail sales on the other hand, continued its stretch of double-digit growth in 2013 after increasing by 12.2% year-on-year in May. Strong performance of theretail sector is continuing to drive demand for 3PL services and warehouse space.
Source : Cushman & Wakefield