2019.08.0502:11:00UTC+00Hong Kong Private Sector Deteriorates In July

Hong Kong's private sector contracted in July with a fall in new order and output, survey data from IHS Markit showed on Monday.

The Purchasing Manager's Index declined to 43.8 in July from 47.9 in June. Any reading below 50 indicates contraction in the sector.

The ongoing US-China trade dispute and recent large-scale political demonstrations significantly reduced demand for county's goods and services, the survey reported.

Inflows of new business fell at the fastest pace seen over a decade due to reduced Chinese demand and new orders from mainland decreased at the steepest rate in nearly four years.

Output declined sharply at the fastest recorded since the first quarter of 2009 and backlogs of work decreased further.

Business confidence declined to the lowest level for the past three-and-a-half years.

"The survey is now broadly indicative of the economy contracting at an annual rate of around 2.0%," Bernard Aw, principal economist at IHS Markit, said.