Hong Kong’s private sector contracted at a sharper pace in March amid lingering COVID-19 disruptions, survey results from S&P Global showed on Wednesday.
The Purchasing Managers’ Index posted below the 50.0 neutral threshold at 42.0 in March, down from 42.9 in February.
The sector shrank for the third straight month with the latest fall the fastest since April 2020.
New orders and output in Hong Kong both declined for a third consecutive month. As a result of the fall in demand, purchasing activity eased in March.
Nonetheless, employment levels increased after the fall in workforce capacity in February.
Meanwhile, the level of work outstanding continued to ease on the back of falling new business.
Price pressures in the Hong Kong private sector also mounted in March with overall input prices rising at the fastest rate since October 2011. Further, overall sentiment in the private sector stayed pessimistic in March.