Hong Kong: PMI deteriorates slightly in June
July 6, 2016
The Nikkei Purchasing Managers’ Index (PMI) released by Markit fell from May’s 47.2 to 45.4 in June, which represents a modest decrease from May’s ten-month high. Consequently, the PMI remains below the 50-threshold that separates contraction from expansion in business conditions where it has been since March 2015.
June’s figure revealed a stronger contraction in new orders, prompting a faster deterioration in output. As a result, the private sector reduced its purchasing activities at the fastest rate since August 2015. Employment continued to fall in June and the pace was the weakest so far this year. Prices for inputs and outputs both saw a small reduction. According to Markit, the private sector operated under worse conditions in June amid weak global economic conditions and muted spending among clients.
Author: Luis Lopez Vivas, Economist