Financial News
Written by: He Jingxi
2020-05-06 09:14
Last update date: 2020-05-06 09:14The seasonally adjusted IHS Markit Hong Kong Purchasing Managers Index (PMI) reported 36.9 in April, indicating a sharp decline in the private economy.
Bernard Aw, chief economist of IHS Markit, pointed out that due to the global prevention and control measures of the new coronary pneumonia epidemic, Hong Kong ’s private economy fell into a severe recession at the beginning of the second quarter, output and order sales fell sharply, employment continued to regress significantly, and companies also significantly reduced procurement activity. Overall business sentiment remains pessimistic. The majority of industry players expect that the business volume in the next 12 months will be further reduced.
According to the survey data, the amount of unfinished work of enterprises has dropped sharply, and the phenomenon of overcapacity is obvious. In addition, data show that deflationary pressures have risen further.
Hong Kong economy