Hong Kong: Deterioration in the private sector continues to ease in April
The IHS Markit SAR (private sector) Purchasing Managers’ Index (PMI) increased to 36.9 in April from 34.9 in March, but remained markedly below the 50-threhold that indicates an improvement in the private sector economy over the previous month. April’s print marks 25 consecutive months of deteriorating operating conditions in Hong Kong’s private sector.
April’s downturn came on the back of declines in new orders, production and exports. Moreover, business sentiment remained depressed, and employment levels dipped.
Commenting on April’s print, Bernard Aw, principal economist at IHS Markit, noted:
“Business sentiment remained deeply negative as majority of firms were pessimistic of a recovery over the next 12 months amid the pandemic.”