Hong Kong’s private sector activity continued to deteriorate markedly in November, amid reports of weak economic conditions both domestically and abroad, results of a survey by Nikkei and Markit Economics showed Thursday.
The Nikkei Purchasing Managers’ Index, or PMI, for the private sector, came in at 46.6 in November, the same reading as in October. However, any reading below 50 indicates contraction in the sector.
New orders dropped sharply in November on weak market conditions and a general unwillingness to commit to spending. Moreover, new business inflows from mainland China fell for the sixteenth month in a row.
Consequently, companies reduced their output for the eighth successive month in November.
Employment level in the private sector decreased further in November, albeit at a modest pace.
On the price front, input prices declined at the steepest pace in six months. Output prices also decreased in November amid reports of discount pricing strategies to boost new business.
“As global economic conditions remain fragile amid slower growth in China, it appears unlikely that Hong Kong’s private sector will see a growth recovery until demand conditions improve,” Annabel Fiddes, Economist at Markit, said.
The material has been provided by InstaForex Company – www.instaforex.com