Thunderstorm
21°CThu :Thunderstorms Early. High: 30 Low: 19

Emerging market output edges higher in Aug; India posts sharp fall

Emerging market output edges higher in Aug; India posts sharp fall

New Delhi: Private sector activity across the emerging market economies edged higher in August, but India posted the steepest rate of decline since March 2009, an HSBC survey said on Thursday.

According to HSBC, emerging market activity turned positive again in August, after losing traction in every month since April, and experiencing outright contraction in July.

The HSBC Emerging Markets Index (EMI), a monthly indicator derived from the PMI surveys, 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 in July to 50.7 in August, the first rise in the headline figure since March.

The improvement in August was largely due to modest improvements in business conditions in China and Russia, which helped it offset a steep deterioration in India and a marginal worsening in Brazil, HSBC said.

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 report further said that manufacturing output was flat in August, as a fractional rise in China PMI was weighed down by declines in other Asian economies and Brazil. Meanwhile, growth of services activity remained weak.

“A group of large emerging economies including India, Indonesia, Brazil and Turkey are grappling with deeper supply -side problems, owing to low domestic savings, infrastructure bottlenecks and loss of competitiveness with rising unit labour costs,” HSBC Chief Economist, CEE and Sub-Saharan Africa Murat Ulgen said.

According to Frederic Neumann Co-Head of Asian Economic Research “Asian manufacturers can exhale amid better orders but FX turmoil showing in India and Indonesia, which aren’t out of the woods yet.”

Meanwhile, employment declined further in August. The manufacturing workforce shrank for the fourth month running, while service sector staffing declined for the first time in over four years, albeit marginally.

Inflationary pressures, however, picked up slightly in August, with input prices increasing at the fastest rate in six months. Moreover, output prices rose for the first time in five months, HSBC said.

 

Top Stories

10-amarnath-holy-cave-shrine1

Over 1.5 lakh pilgrims finish Amarnath Yatra that ends on 10th August

July-10-2014
Srinagar, July 10: More than 1.5 lakh pilgrims have finished the Amarnath Yatra that started in Srinagar on 28 June. Trips for
xsim-bhullar-1404816908.jpg.pagespeed.ic.MucxL2C8ro

Sim Bhullar, First Indian-Origin Athlete to be Part of NBA

July-10-2014
Washington, July 8 (IANS) Sim Bhullar has become the first player of Indian-origin ever to be part of the National Basketball Association
Imageggl8da40602-cb3a-4352-8819-fa69ad1e50f7

Samsung launches Galaxy K Zoom with 20.7 MP camera for Rs 29,999

July-10-2014
Samsung has launched the much awaited Galaxy K Zoom on pre-order on Amazon. in for of Rs. 29,999. The smartphone will be
42280e31-66ac-4b67-93ba-7c938b007594wallpaper1

Budget 2014 highlights: FM Arun Jaitley gives tax relief, promises higher growth

July-10-2014
India raised the personal tax exemption limit by Rs. 50,000 for those below the age of 60 as finance minister Arun Jaitley
1394443507-2064

Markets trim gains as Budget speech begins

July-10-2014
Markets trimmed some of the gains as investors booked profits at higher levels. At 11:15AM, the 30-share Sensex was up 79 points
arun-jaitley_625x300_51404965378

Budget 2014: Union Cabinet Meets, Approves Arun Jaitley’s Budget

July-10-2014
New Delhi: The Union Cabinet met in Parliament House this morning and approved the Union Budget that Finance Minister Arun Jaitley will