The private sector in Hong Kong experienced a faster contraction rate in February, according to the recent survey by S&P Global. The Purchasing Managers' Index (PMI) score was noted to be 49.7, lower than January's 49.9 score, further moving away from the 50-point mark which distinguishes between expansion and contraction.
Private sector companies in Hong Kong Special Administrative Region (SAR) accounted for a decline in new business for a consecutive second month in February. This decrease happened at an unprecedented rate since the previous September. Concurrently, new orders, from overseas and mainland China, sustained their downtrend in the middle of the first quarter. The fall in new work was attributed to increased competition, deteriorating demand situations, and diminishing customer bases based on anecdotal findings.
The dwindling new business operations led to a drop in activity for the first time within the quarter. Manufacturing sector firms reported the most significant output decline, as per the data categorized by sub-sector.
