Light Rain
13°CMon :Cloudy. High: 17 Low: 9

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

Virat-Kohli

Kohli claims second spot, Bhuvneshwar breaks into main 10

October-20-2014
Kohli scored 191 runs, incorporating 127 in the last match, in India’s 2-1 arrangement win as he pushed South Africa’s Hashim Amla
saif-kareena-sharmila

EC issues notice to Saif Ali Khan, Sharmila Tagore for playing noisy music

October-20-2014
Gurgaon: The Election Commission (EC) on Saturday issued notices to veteran Bollywood star Sharmila Tagore and her child Saif Ali Khan for
f4b6397fac232c4c3ce5d0de2ba56cfc08120592

Facebook pairs publicizing bug reward

October-20-2014
Facebook has multiplied prize levels for designers who bring up defects in the company’s promoting code. Facebook has multiplied its remunerate for
BSNL--621x414

BSNL decreases call rates to Nepal by 35% on PMO counsel

October-20-2014
Bharat Sanchar Nigam Ltd (BSNL) has decreased call rates to Nepal by around 35% as the Prime Minister’s Office (PMO) had raised
Shanta-Kumar

Shanta Kumar said that Miserable (Badal) must take lessons from Haryana results

October-20-2014
Chandigarh/ Punjab: BJP state in-control pioneer Shanta Kumar said the Shiromani Akali Dal (Badal) must take lessons from the survey conclusion in
0

Microsoft plans to dispatch smartwatch with wellness offers inside weeks

October-20-2014
Microsoft is going to dispatch a smartwatch inside the following few weeks that will inactively track a client heart rate and work