Hong Kong private sector grows for third straight month, key index shows
Despite ending the year on a positive note, analysts warn local companies to brace for rough economic times ahead
Hong Kong’s private sector showed positive growth for the third straight month, according to a key economic indicator released on Tuesday, but the future business outlook looked gloomy.
The Nikkei Hong Kong Purchasing Managers’ Index gauges private sector business conditions including manufacturing, services, retail and construction.
A score of 50 or above signals growth in the economy, while anything below reflects decline. The rate of growth or contraction is shown by how far the figure deviates from the median of 50.
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The index rose to 50.7 in November, up from 50.3 in October, but down from September’s reading of 51.2.
However, the report noted that November’s figure “remained below the historical average”.
The index is calculated from a monthly poll of executives from more than 300 companies in the city to gauge sentiment in the city’s private sector.
“Hong Kong’s private sector economy is on course to end the year on a positive note, with November PMI data indicating a pickup in growth momentum,” Bernard Aw, principal economist at UK-based analytics firm IHS Markit, said.
