05.07.201800:43:00UTC+00Hong Kong Private Sector Deteriorates Further

Hong Kong's private sector activity deteriorated further in June, and at the steepest pace in nearly two years, survey data from IHS Markit showed Thursday.

The seasonally adjusted headline Nikkei Hong Kong Purchasing Manager's Index dropped to 47.7 in June from 47.8 in May. Any reading below 50 indicates contraction in the sector.

Among components, output, new orders and employment all continued to decline in June.

"The Nikkei PMI exhibits a strong correlation with Hong Kong's GDP, with a two-month lead, suggesting that recent poor performances will be keenly felt during the third quarter," Bernard Aw, Principal Economist at IHS Markit, said.