Hong Kong: PMI falls deeper into negative territory in May
June 3, 2015
The HSBC Purchasing Managers’ Index (PMI) fell from 48.6 in April to 47.6 in May. 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 September 2011.
May’s disappointing result came on the back of drops in output, new orders and employment. The economic slowdown in China was a key factor driving down the index as new order intakes from Mainland China fell at the sharpest rate since December 2008. HSBC analysts pointed out that, “the data suggest that Hong Kong’s economy may struggle to recover any growth momentum in the near-term, as companies continued to shed staff and reduced their input buying in response to weaker demand conditions.”
Author: Eric Denis , Economist