Manufacturing and services sectors in India expanded at a faster rate than China’s in May even as emerging market output remained stuck in “low gear”, an HSBC survey said today.
The HSBC Emerging Markets Index (EMI), a monthly indicator derived from Purchasing Managers’ Index surveys, inched up to 50.6 in May from 50.4 in April, indicating weak output growth across global emerging markets.
While the EMI stood at 50.6 in May, the developed world’s PMI was at 55.4 during the month.
- The Royal Opera House Reopens After Decades Of Neglect: Here’s A Quick Tour
- Tata Sons Rubbishes Cyrus Mistry’s Allegations: Here’s What Happened
- Pakistan High Commissioner denies allegations leveled on his staffer for espionage activities
- Odisha: Villagers Refuse To Cremate Dalit Woman’s Body
- Here’s What Farhan Akhtar Said On Karan Johar-MNS ‘Deal’ Over Ae Dil Hai Mushkil’s Release
- Government’s Diwali Gift to Central Government Employees, Pensioners
- Bigg Boss 10 26th October Review: This Episode Is All About Fights
- New Zealand Beat India By 19 Runs In Ranchi; Series Levelled At 2-2
- DND Toll-Free: Noida Toll Company Moves Supreme Court Against Allahabad High Court
- British PM Theresa May Says Kashmir Is A Matter For India, Pakistan To Sort Out
- J&K: Students Suffer As Schools Along LOC Forced To Shut Amid Firing
- Jayalalithaa’s Health: AIADMK Women Supporters Continue Special Prayers For CM
- HTC Desire 10 Lifestyle First Look Video
- Fissures Remain Within Samajwadi Party: All You Need To Know
- Big Cheer For Delhi-Noida Commuters, DND Flyway Becomes Toll Free
“While the former (EMI) points to an ongoing languor that has plagued the emerging markets over the past year, the developed world has moved into a higher gear and is now enjoying it strongest growth for just over three years,” Markit Chief Economist Chris Williamson said.
During May, the HSBC composite index for India, which maps both manufacturing and services, stood at 50.7, whereas for China it was 50.2, Brazil 49.8 and Russia 47.1. An index measure of above 50 indicates expansion.
“Disappointing performances continued to be seen across the four largest emerging markets in May. The only good news is that China and India both returned to growth, although in both cases the rate of expansion was only very weak. Brazil and Russia meanwhile continued to contract,” Williamson said.
Williamson further said that “an ongoing near-stagnation means the emerging markets are, as a whole, underperforming the developed world to the greatest extent ever recorded by the PMI surveys”.
New business orders across emerging market economies increased at a slightly faster pace in May. Meanwhile, employment declined further, and at the strongest rate since June 2009.
On price rise HSBC said, inflationary pressures remained subdued in May, with input price inflation unchanged from April’s ten-month low. Moreover, prices charged increased at the strongest rate in five months, albeit only marginally, HSBC said.
Meanwhile, the HSBC Emerging Markets Future Output Index that tracks firms’ expectations for activity over the next 12 months, fell sharply to a new low in May, with sentiment in the service sector notably weak.