Hong Kong: PMI falls deeper into negative territory in July
August 5, 2015
The NIKKEI Purchasing Managers’ Index (PMI) fell from 49.2 in June to 48.2 in July. As a result, the PMI is further below the 50-threshold that separates contraction from expansion in business conditions.
July’s disappointing result came on the back of drops in output, new work and purchasing activity. The economic slowdown in China was a key factor driving down the index as new order intakes from Mainland China have systematically declined throughout the past year. NIKKEI analysts pointed out that, “the latest set of PMI data signalled an ongoing downturn in Hong Kong’s private sector [...]. The latest PMI reading is consistent with an annual rate of economic growth of only 1.3%, down from an average pace of 1.5% signalled for the second quarter.”
Author: Eric Denis , Economist