HONG KONG, Jan 4 (Reuters) - Data from the HSBC Hong Kong

Purchasing Managers' Index (PMI) for December:

KEY DATA

Dec Nov Oct Sep Aug Jul Jun May Apr

HK PMI 51.7 52.2 50.5 49.6 50.5 50.3 49.8 49.4 50.3

A survey reading above 50 indicates expansion. A figure

below 50 denotes contraction.

CONTEXT:

* The PMI averaged 51.5 in the fourth quarter, up from 50.2

in the third quarter, marking the highest quarterly reading

since the first quarter of 2012.

* Growth in the volume of new orders received by private

sector companies eased in December from November. New orders

from mainland China fell modestly from November.

* The output index increased for the third consecutive month

in December as economic conditions improved, suggesting the

strongest rate of growth in 10 months.

* Suppliers' delivery times shortened in December. It was

the first reading above 50 since April and the highest in almost

10 years.

* Employment in Hong Kong's private sector grew modestly in

December.

* Input costs faced by private-sector companies were rising

in December, with both purchase prices and staff costs picking

up from November. Input price inflation slowed slightly from

November.

Commenting on the Hong Kong PMI survey:

'With the fourth quarter's average PMI notably stronger than

the previous quarter's average, and retail sales growth holding

firm, we should see further improvement in the next GDP

release,' Donna Kwok, HSBC Greater China Economist in Hong Kong,

said.

'The softening of new business inflows from China is a

concern, but can be partly attributed to a post-Christmas orders

lull. With healthy local job market conditions still

underpinning domestic demand, Hong Kong's economy looks set to

strengthen through year-end,' Kwok added.

About the Hong Kong PMI:

The data is collected by Britain-based Markit Group Ltd, and

the report is sponsored by HSBC. For more

details, click:

http://www.markit.com/information/register/reuters-pmi-subscriptions

(For more stories on the Hong Kong economy, click on )

(To read more PMI reports from around the world, click on )

(Reporting by Christina Lo; Editing by Neil Fullick)

Keywords: HOLD HONGKONG/PMI

(christina.lo@thomsonreuters.com)(+852 2843-6960)(Reuters Messaging: christina.lo.thomsonreuters.com@reuters.net)

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