Index shows darker outlook for HK private sectorBusiness | 8 Feb 2019 3:32 pm
The Nikkei Hong Kong Purchasing Manager's Index climbed to 48.2 in January from 48 in December last year, but still stood in the contraction zone, indicating a deterioration in manufacturing and service sectors for the 10th straight month, Nikkei Asian Review reported.
The report said ongoing Sino-US trade tensions was the main factor while demand condition deteriorated as local export sales to mainland China declined last month.
Meanwhile, firms scaled back purchasing and employment with a reduction of total inflows of new business, which extended the trend of lower sales to 10 months.
"Given flagging Chinese demand, the outlook for Hong Kong's private sector continues to darken," said Bernard Aw, Principal Economist at IHS Markit, which compiles the survey.
He added: "With recent PMI surveys painting an increasingly challenging economic environment for Hong Kong, growth is expected to slow in 2019."