A gauge of Hong Kong’s economic health worsened to the weakest level since September 2011 last month as the drag from a slowdown in mainland China intensified.
The Hong Kong Purchasing Managers’ Index from HSBC Holdings Plc and Markit Economics fell to 47.6 in May, from 48.6 a month earlier. Weaker client demand in mainland China was a key factor driving new business lower, with new order intakes from the mainland falling at the sharpest rate since December 2008, according to the report. Numbers below 50 signal contraction.
Hong Kong’s high-end stores have been weighed by slower economic growth in China and a campaign against corruption. Retail sales in the city fell 2.2 percent from a year earlier in April, data Tuesday showed.
Financial Secretary John Tsang this week reiterated the city’s 2015 gross domestic product forecast of 1 percent to 3 percent. Economists expect a 2.6 percent expansion, according to analysts surveyed by Bloomberg.