Hong Kong Manufacturing Sentiment Hit Amid Trade War, Protests
Sentiment among Hong Kong’s manufacturers worsened again in August as the U.S.-China trade war rumbled on and the city’s economy buckled under the brunt of anti-government protests.
The latest reading for the Markit Hong Kong Purchasing Managers’ Index slid to 40.8 from 43.8 in July, a second straight monthly drop, according to data released by IHS Markit. It is a fresh low for the indicator of manufacturing intentions in data going back to at least September 2016. Figures below 50 indicate contraction.
The significant deterioration in the measure in July and August comes as city-wide protests escalated in earnest while the trade war also showed no signs of slowing down. Hong Kong’s economy has slowed sharply so far this year, with weakness across its most important industries including export trade and retail.
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