HONG KONG: The Nikkei Hong Kong Purchasing Managers’ Index, or PMI, for May fell to 50.5 from April’s 51.1.
A reading above 50 indicates economic expansion, while a reading below 50 points toward contraction. “Following a firm start to the second quarter, Hong Kong’s private sector showed a slowdown in growth during May. While output growth was sustained, a renewed fall in new orders and slower inventory build raised doubts whether recent improvements in the sector will continue,” said Bernard Aw, an economist at IHS Markit. “Hong Kong’s private sector economy continued to face difficulties. A persistent squeeze on profit margins and weak business sentiment will add to the sector’s struggle to sustain expansion.”
