The private sector in Hong Kong continued to contract in November, and at a faster pace, the latest survey from S&P Global said on Monday with a PMI score of 48.7.
That’s down from 49.3 in October and it moves further beneath the boom-or-bust line of 50 that separates expansion from contraction.
The two biggest PMI components, output and new orders, recorded steeper contractions in the month of November, thereby weighing on the headline PMI. New orders, which shrank at the faster pace between the two, was affected by rising COVID-19 infections in November and a worsening economic backdrop. This led to a reduction in overall business activity.
Lower incoming new business from abroad was also recorded in November owing to weak underlying demand and COVID-19 disruptions. That said, the pace at which international new orders declined was the softest in six months, thanks to a further loosening of COVID-19 travel curbs.