Hong Kong: PMI reaches three-month high in October; remains in negative territory
November 4, 2015
The Nikkei Purchasing Managers’ Index (PMI) rose from 45.7 in September to 46.6 in October, which marked a three-month high. As a result, the PMI is now closer to the 50-threshold that separates contraction from expansion in business conditions.
October’s result came mainly on the back of softer declines in employment, output and new orders. However, new business from Mainland China kept decreasing at significant rates. Nikkei analysts pointed out that, “It is unlikely that the economy will shift into a higher gear in the near term, as companies reported a further dramatic fall in business outstanding and also continued to scale back their purchasing activity. The fact that a sharper reduction in selling prices was not sufficient enough to attract new clients adds to the likelihood that the economy will contract further moving towards the end of the year.”
Author: Eric Denis , Economist