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The private sector in Hong Kong continued to contract in October, albeit at a slower pace, the latest survey from Nikkei showed on Monday with a PMI score of 48.6.
That's up from 47.9 in September, although it remains beneath the boom-or-bust line of 50 that separates expansion from contraction.
Individually, there were declines in output, new orders and input purchases, while supplier delivery times lengthened at the sharpest rate since April 2011.
Firms cut selling prices further amid weak sales and high competition.
