Hong Kong's private sector remained in contraction zone in June, although the rate of deterioration eased marginally to the weakest seen in three months, survey data from Markit Economics and Nikkei showed Monday.
The headline Nikkei Purchasing Managers' Index for the private sector rose to 49.2 in June from 47.6 in May.
New business continued to decline in June due to weaker client demand from China but the rate of decrease eased markedly since the previous month. New order intakes from China decreased at a slower pace since May as relatively subdued market conditions had dampened client demand both at home in China.
Private sector output decreased for the third straight month in June but the rate of contraction eased marginally since May's solid pace.
Firms cut their staffing again in June as work-in-hand fell due to fewer new orders, with the rate of job shedding quickening to a solid pace. Purchasing activity fell for a year in June although the rate of decline was the sharpest seen since January.
On the prices front, input prices increased in June due to higher staff costs as average purchasing costs fell slightly, though the rate of inflation was only fractional. Meanwhile, selling prices continued to decline in June as firms cut charges as part of promotions that were implemented to boost new business.
"Furthermore, employment and purchasing activity both fell at stronger rates at the end of second quarter, suggesting that companies have relatively muted growth expectations at least in the near term," said Annabel Fiddes, Economist at Markit.
For comments and feedback: editorial@rttnews.com