Hong Kong August PMI is at its lowest since February 2009
The IHS Markit Hong Kong Buying Managers’ Index (PMI) sank to 40.eight in August from 43.eight in July, signalling the steepest deterioration within the personal sector since February 2009.
“The newest PMI information reveal a Hong Kong financial system flirting with recession within the third quarter as enterprise exercise is more and more aggravated by protest-related paralysis,” mentioned Bernard Aw, Principal Economist at IHS Markit.
Lots of of 1000’s of individuals have taken to the streets since mid-June in protests calling for higher democracy within the former British territory. The demonstrations pose a direct problem to Beijing, which has accused overseas powers, significantly the USA and Britain, of fomenting unrest.
Each the commerce headwinds and political disaster have fanned enterprise pessimism, with confidence slumping to its lowest on report, the survey confirmed.
New orders continued declining and on the sharpest tempo since February 2009, dragged by a report decline in new enterprise from mainland China.
Hong Kong is on the verge of its first recession in a decade because the financial system shrank 0.4% in April-June from the earlier quarter, information confirmed, as more and more violent protests turned away vacationers and hit retail gross sales in one of many world’s hottest buying locations.