FXStreet (Bali) – Hong Kong August PMI came in at an astounding 44.4 vs 48.2 prior, which translates into the lowest since April 2009 and a 6th consecutive month of decline, with new orders from China deteriorating the most in 80 months, which is more evidence of weak Chinese fundamentals.
Quotes from Annabel Fiddes, Economist at Markit
“Hong Kong’s private sector saw the quickest deterioration in overall operating conditions since the global financial crisis in August, driven in part by steep contractions in both output and new orders.”
“Another worrying development was the sharper rate of job cuts in August, with the latest fall in employment the fastest since April 2003.”
“The data continues to point to weaker demand conditions amid an uncertain global economic outlook, as fears continue to mount over China’s growth prospects.
“The latest set of PMI data signalled that new business from Mainland China placed at Hong Kong’s private sector firms dropped at the sharpest rate since late-2008, and remains a key factor weighing on overall new work.”
“It seems unlikely that the performance of the sector will improve unless demand conditions pick up, as further cuts to output, staff numbers and purchasing activity suggest that the sector will remain in contractionary territory at least in the near-term.”
(Market News Provided by FXstreet)