TOKYO -- Hong Kong's private sector continued to deteriorate in September, where both output and new orders declined amid rising trade tensions between the U.S. and China.
The Nikkei Hong Kong Purchasing Manager's Index, or PMI, declined from 48.5 in August to 47.9 in September, staying below the 50-point line separating expansion from contraction.
Total new orders declined further, representing a sixth monthly contraction, as orders from China shrank considerably. Dull demand conditions pushed companies to cut back on output as well.
"Growing uncertainty over future demand saw companies cutting back on input purchases and trimming inventories as part of efforts to conserve capital," commented Bernard Aw, Principal Economist at IHS Markit, which compiles the survey. "The latest headline PMI is indicative of GDP growth running below a 2% annual rate in the third quarter."
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