Hong Kong: PMI falls deeper into negative territory in April
May 6, 2015
The HSBC Purchasing Managers’ Index (PMI) fell from 49.6 in March to 48.6 in April. As a result, the PMI is further below the 50-threshold that separates contraction from expansion in business conditions. The reading marked the lowest level since October 2014.
April’s disappointing result came on the back of drops in output, new orders and employment. The economic slowdown in China impacted domestic demand from Mainland China, which declined for the ninth consecutive month. HSBC analysts pointed out that, “[u]nless demand conditions improve in upcoming months, it is likely that Hong Kong’s private sector will struggle to expand in Q2.”
Author: Eric Denis , Economist