Hong Kong businesses shedding jobs at fastest rate since 2009
Hong Kong’s private sector had a disappointing start to the year, as companies felt the chill of slowdown in the city and over the border.
Hong Kong businesses cut staffing levels at the fastest rate in almost 51/2 years last month as the city's economy made a gloomy start to 2015.
The weak employment picture was revealed in the latest HSBC Hong Kong Purchasing Managers' Index, a monthly measure of economic activity. Overall, the PMI for last month fell to 49.4, down from 50.3 in December. A reading below 50 indicates contraction, above 50 signals expansion.
The city's PMI has remained below 50 for five of the past six months, with the bank citing the 79-day Occupy Central protests for democracy as one factor.
HSBC does not quantify readings for its subindexes, but the bank said the subindex for employment was at its weakest level since July 2009, towards the end of the global financial crisis. Most of the lost jobs were a result of bosses not replacing people who left voluntarily, HSBC said.
"Hong Kong's economy remains relatively subdued at the start of this year, with slower growth domestically and on mainland China continuing to weigh on demand," said John Chu, an HSBC economist. "This has meant that firms in the private sector are still cutting jobs and poses a risk to consumption as a source of growth this year."
On the costs front, average input prices, such as wages and sourcing costs, increased last month following a decline in December, as did prices charged.
