Hong Kong PMI fell to 45.3, hits 8-month low
Staff writer ▼ | May 6, 2016
The Nikkei Hong Kong Purchasing Managers Index fell to an eight-month low of 45.3 in April from 45.5 in March.Article continues below
Thi is suggesting a further deterioration in Hong Kong's private sector amid China's economic slowdown, Markit said.[break]
The April PMI was dragged down partly by fewer new orders and new business from China, Markit said. A PMI reading above 50 indicates an expansion in manufacturing activity, while a reading below that points to a contraction.
The Hong Kong PMI has been in contraction for 14 months, while the latest rate of deterioration marked the fastest since August 2015, Markit added.
Markit economist Annabel Fiddes said the latest Hong Kong PMI was partly driven by a faster decline in total new business. "As a result, companies made further cuts to production schedules and employment, and companies lowered their charges at a marked pace in order to attract new business," she said.
"The weak start to the second quarter indicates that the sector continues to struggle in the face of poor economic conditions and reduced client demand, particularly across mainland China," she added. ■ What to read next
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