Protests Wreak Havoc on Hong Kong’s Economy: HSBC PMI

Posted by on Nov 7, 2014 in Blog | 0 comments

In spite of Western media reports trying to prop up the students and insisting their protests exert minimal negative impact on the Hong Kong economy, here is evidence sharply to the contrary.  Hardly surprising!

 

Activity in Hong Kong’s private sector fell by its biggest margin in three years in October, a private survey showed on Wednesday, offering a first glimpse of the impact pro-democracy protests are having on the economy and signalling a further slowdown.

The monthly Purchasing Managers’ index (PMI) in Hong Kong’s private sector compiled by HSBC/Markit fell to 47.7 in October — its strongest pace of deterioration in operating conditions since September 2011 — from 49.8 a month ago.

Sub-indices measuring new orders and output led the decline with a number of companies surveyed attributing the drop to recent political protests that have blocked key roads and hurt business activity for more than a month.

“The slowdown in economic activity in Hong Kong deepened in October as orders and output fell at an accelerated pace,” John Zhu, HSBC’s economist in Asia, said.

A reading above 50 in the business survey indicates an expansion in activity while one below that threshold points to a contraction.

The dismal data is the first set of figures that factor in the impact of pro-democracy protests that have rocked the former British colony.

– Reuters