Emerging Markets Output Growth Slows to 4-month Low in January - HSBC
February 10, 2014 3:16 PM EST
Business activity across emerging markets expanded in January at the slowest pace in four months, dragged down by sluggish services sectors in the BRIC quartet of big developing countries, a survey showed on Monday.
Most European markets trade higher on 4 November (Reuters).
HSBC's composite emerging markets index of manufacturing and services purchasing managers' surveys slipped for the second month running to 51.4 in January. It stayed under the 2013 average of 51.7 and well below the score of 64.1 posted last January.
But the monthly index remained above the 50 threshold which marks the difference between expansion and contraction.
Based on data from purchasing managers at about 8,000 firms in 17 countries, the survey showed signs of manufacturing and export revival in some countries but Chinese factory output fell below the 50 mark, Brazilian manufacturing growth slowed and output fell in Russia and Indonesia.
HSBC's global head of emerging markets research, Pablo Goldberg, said the data showed a clear divergence in recovery pattern between emerging economies.
"By contrast, PMIs decelerated in Turkey, Brazil, Russia and Indonesia. These are among the countries where deteriorating external balances have prevented monetary easing or forced tightening."
Several emerging central banks such as Turkey, India, South Africa and Brazil have tightened monetary policy in recent weeks and many more are expected to follow suit, with severe consequences for economic growth.
While inflationary pressures were subdued, weak currencies were raising costs for some manufacturers, HSBC said. Turkish firms for instance saw the steepest rise in input prices in nearly three years, a result of the lira's fall to record lows.
The future output index, which tracks firms' expectations for activity in 12 months' time, picked up in January after falling in December to a six-month low.
But within this, manufacturing sentiment hit a ten-month high while that in the service sector fell to a record low.
The HSBC index is calculated using data produced by Markit.
Most Popular Slideshows
- Kate Middleton First Official Solo Trip: Details For Malta Tour Revealed [PHOTOS]
- 2014 MTV Video Music Awards: Full List Of Winners, Miley Cyrus ‘Wrecking Ball’ Bags Video Of The Year [PHOTOS]
- Manny Pacquiao Vs. Chris Algieri World Tour Kick Off Press Conference In Macau [PHOTOS]
- Kate Middleton’s Mom Accused Of Being A Social Climber, Prince George Not Seen By Relatives
Join the Conversation
- ISIS Posts Threats On Twitter, Works Around California Earthquake Hashtags, Pressures US To Respond To #StevensHeadinObamasHands
- Iceland Volcano: Bardarbunga Stricken by 5.7 Magnitude Earthquake But Still No Eruption, Magma Could be Going Elsewhere
- United Airlines Flight Diverted as Passengers Fought Over Anti-Seat Reclining Device
- Chicago Marathon Brings Over $253 Million in Business
- New Zealand's High Growth Rate Predicted To Fall When Christchurch Rebuild Halts
- Apple on iPhone 6 Release Date One Week After September 9 Despite Display Shortage Starting $800
- James Foley Video Had A Change Of Actor – Expert Points Out
- Canada Concerned About Russia’s Military Expansion in Arctic
- Nokia X2 vs. Nokia Lumia 530 - Specifications, Features And Price Showdown
- Trending: Ice Bucket Challenge Replaced By Rubble Bucket Challenge By People Of Gaza
- US, Syria to Work Together to Vaporise ISIS
- European Central Bank Advises Action to Boost Demand and Employment In EU