HK PMI remains in contractionary mode

07-Dec-2016 Intellasia | Marketwatch | 6:00 AM Print This Post

The Nikkei Hong Kong Purchasing managers Index rose slightly to 49.5 in November from 48.2 in October, but remains in contractionary mode, indicating a further deterioration in Hong Kong’s private sector, index compiler IHS Markit said Monday.

The November PMI reading reflects a further decline in output and new orders, although at slower rates, IHS Markit said. A PMI reading above 50 indicates an expansion in manufacturing activity, while a reading below that points to a contraction. The PMI data have been in contraction mode for over 20 consecutive months.

IHS Markit economist Bernard Aw said the latest data indicate the business environment in Hong Kong remained mired in difficulties.

“Weak client demand continued to translate into further declines in new orders, output and purchasing activity,” he said, adding that yuan depreciation also damped new work inflows from mainland China.

The PMI is derived from indexes that measure changes in output, new orders, employment, suppliers’ delivery times and stocks of goods purchased. The PMI is based on a survey of about 300 companies.

http://www.marketwatch.com/story/hong-kong-pmi-remains-in-contractionary-mode-2016-12-05

 


Category: Hong Kong

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