Business conditions in Hong Kong slowed in May, the latest survey from Nikkei revealed on Monday with a PMI score of 50.5.
That's down from 51.1 in April, although it remains above the boom-or-bust line of 50 that separates expansion from contraction.
Individually, output growth supported the sector, but a renewed fall in new orders and a slower inventory build weighed.
Also, cost inflation accelerated to a three-year high.
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