Hong Kong: PMI decreases again in April
May 5, 2016
The Nikkei Purchasing Managers’ Index (PMI) released by Markit decreased from March’s 45.5 to 45.3 in April, marking an eight-month low. The PMI has been below the 50-threshold that separates contraction from expansion in business conditions since March 2015.
April’s figure reflected a faster deterioration in output caused by a sharper contraction of new orders, which prompted, companies to cut staff for the fourth month in a row. Against this backdrop, and since firms saw input prices decreasing in April, output prices declined markedly with the aim of attracting new business. According to Markit, the weak start to the second quarter reflects ongoing strain on the sector within a context of bleak economic conditions, due in particular to weak demand from China. The experts from Markit also expect the outlook to remain gloomy should global momentum not pick up and the implementation of further policy measures not occur.