Hong Kong: PMI falls to negative territory in March
April 2, 2015
The HSBC Purchasing Managers’ Index (PMI) fell from 50.7 in February to 49.6 in March. As a result, the PMI dipped below the 50-threshold that separates contraction from expansion in business conditions for the second period in three months.
March’s disappointing result mainly reflected that output and new orders increased only marginally, while businesses continued to lay off staff. Given the economic slowdown in China, domestic demand from Mainland China declined for the eighth consecutive month. HSBC analysts pointed out that, “the headline PMI fell back into negative territory in March, suggesting that Hong Kong’s private sector struggled to carry through growth momentum that was evident in February. On a positive note, inflationary pressures remain relatively subdued, with both input and output prices rising only slightly.”