Emerging Markets output edges higher, confidence up: HSBC

HONG KONG - The HSBC Emerging Markets Index (EMI), a monthly indicator derived from the PMI surveys, has recovered from July’s post-crisis low in August, but signalled only a marginal rise in output across global emerging markets. The EMI rose from 49.5 to 50.7, the third-lowest figure in more than four years, but it was the first rise in the headline figure since March.

Manufacturing output was flat in August, with a fractional rise in China weighed down by declines in other Asian economies and Brazil. Growth of services activity remained weak.

Of the four largest emerging economies, China and Russia posted mild increases in output following declines in July. Brazil registered a further marginal drop in activity, while India posted the steepest rate of decline since March 2009.

The HSBC Emerging Markets Future Output Index, tracking firms’ expectations for activity in 12 months’ time, rose for the second month running to the highest since March, but remained weaker than its historic 17-month trend level. Output expectations at manufacturers were slightly weaker than those at service providers. Among the four largest emerging economies, sentiment was strongest in Brazil. www.hsbc.com (ATI).