Hong Kong: PMI improves in September; remains in negative territory
October 6, 2015
The Nikkei Purchasing Managers’ Index (PMI) rose from 44.4 in August to 45.7 in September. As a result, the PMI is now closer to the 50-threshold that separates contraction from expansion in business conditions.
September’s result came mainly on the back of a softer decline in employment and output. However, new orders kept falling sharply, mainly due to a decline in new work coming from Mainland China. Nikkei analysts pointed out that, “the global economic slowdown continued to weigh on the performance of Hong Kong’s private sector at the end of the third quarter [...]. Of particular concern was the steepest fall in new business from Mainland China since the global financial crisis, which was partly driven by the recent devaluation of the yuan. Overall, PMI data for Q3 suggest that the sector suffered its worst performance since Q2 2009. Furthermore, it’s likely this downward trend will extend into the final quarter of 2015 unless demand conditions and new orders improve.”
Author: Eric Denis , Economist