TOKYO -- Hong Kong's private sector economy showed little signs of life, with its key economic activity gauge extending its downturn to a 13th straight month, a survey found Monday.
The Nikkei Hong Kong Purchasing Manager's Index, or PMI, stood at 48.4 in April vs 48.0 in March, a slightly moderate pace of deterioration but still remaining below the break-even level of 50 since April 2018. A reading above 50 indicates an expansion while a reading below 50 points to a contraction.
Lower demand from external clients, especially mainland China, weighed on sales performance, according to the survey.
"Private sector businesses in Hong Kong continued to face challenges at the start of the second quarter amid a deteriorating demand environment," said Bernard Aw, economist at IHS Markit, which compiles the survey. The long stretch of downbeat conditions are now "fueling an increasingly gloomy outlook," he added.
"Firms continued to express concerns over trade wars, greater competition, rising costs and a slowdown in the global economy. The survey is broadly indicative of the economy expanding at an annual rate of 1.5%-2.0%," he said.
For more information, visit IHS Markit website.