Q3 Emerging Markets Growth Hits 9 Quarter Low

Oct 12 2011 | 8:13am ET

The HSBC Emerging Markets Index slipped from to 51.9 in Q3 2011 from 54.2 in Q2, registering the weakest growth in nine quarters.

Manufacturing output in these markets fell for the first time in nine successive quarters. Business activity among service providers, on the other hand, increased but at its slowest pace since Q2 2009.

Stephen King, HSBC’s chief economist, said: "It is now apparent that world trade growth peaked in the first quarter. Companies in the emerging world have reacted by clearing their order backlogs at a faster rate than before, helping to support activity near-term. But in the absence of any quick rebound in trade momentum, the weakness revealed in this latest EMI is likely to show up in future employment losses. Already, jobs growth in the emerging world appears to have stagnated.”

Emerging market manufacturers reported lower volumes of new export business for the first time in nine quarters. Foreign order levels fell across the majority of markets, with the Czech Republic, Saudi Arabia and UAE the only exceptions.

In terms of inflation, the survey suggests that policy tightening across the emerging world has weakened inflationary pressures, with input-cost inflation hitting a four-quarter low across EMI markets.

The HSBC EMI is calculated using PMI data produced by global financial information services company Markit.


In Depth

Whisky Business: The Ultimate Liquid Alternative Investment

Sep 15 2014 | 7:02am ET

David Robertson knows his single-malt whisky—he was the Master Distiller at the...

Lifestyle

Hedgies Rock Out For Children's Charity

Sep 15 2014 | 8:40am ET

It's that time of year again—when hedgies trade in their spreadsheets for guitars...

Guest Contributor

Volkered: How Financial Sector Reforms are Creating Opportunities for Hedge Funds

Sep 16 2014 | 11:28am ET

New regulations have dramatically curtailed proprietary trading activity in investment...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

September 2014 Cover

The London Whale: Rogue risk management

The London Whale saga is a twist on the typical rogue trader story as the rogue trader recognized the error of his ways and was prepared to take his medicine but was instructed by superiors to “defe...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.