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

Financial Industry Blockchain Consortium R3 To Open-Source Platform Code

Oct 20 2016 | 9:03pm ET

Bitcoin's blockchain technology has spawned a flurry of activity among fintech startups...


U.S. Trust's Beard: The Rapid Growth of the Art Lending Industry

Oct 7 2016 | 10:55pm ET

Alternative investment managers have emerged as some of the most significant art...

Guest Contributor

Hedge Fund Marketing – Tips for Your Initial Sales Meeting

Sep 29 2016 | 5:46pm ET

There are two main goals a hedge fund should have for an initial in-person sales...