Hong Kong’s private sector growth slowed in October, largely reflecting a renewed decline in new business, data from IHS Markit showed Friday.
The Nikkei headline composite Purchasing Manager’s Index fell to 50.3 in October from 51.2 in September. Nonetheless, a score above 50 indicates expansion.
Signs of recovery in Hong Kong’s private sector economy in September were short-lived, Bernard Aw, principal economist at IHS Markit, said. The survey data point to an annual GDP growth of slightly below 4 percent into the closing quarter of 2017.
Output barely increased in October, as overall order book volumes fell. Further, weak client demand and a lack of capacity pressure weighed on hiring.
Despite softer demand, firms scaled up their buying activity, citing input requirements for new products.
On the price front, there were signs of rising cost pressures, with overall input price inflation reaching the highest level for over three-and-a-half years.
In response to higher input costs, firms raised their selling prices again in October, in order to protect their margins.
Business sentiment about the outlook in the year ahead remained negative in October, survey showed.
Source: RTT News