Economic growth in emerging market economies slowed in the July-September quarter on poor performance by the manufacturing sector, but India expanded more than China, an HSBC survey said. The HSBC Emerging Markets Index (EMI) slipped to 52.1 in the third quarter this year, from 53.2 in the April-June period. A relatively better performance from the services sector was offset by the poor performance of the manufacturing sector, as global demand softened. However, among the big-four emerging markets, expansion in India and Russia were better than Brazil and China, HSBC said.
Our Bureau reports:
Emerging economies, including BRIC nations, continue to feel the heat from the developed nations in terms of falling export orders and poor demand for services, according to HSBC Emerging Markets Index report.
“Emerging economies are being impacted by the misery of the developed world,” said the report authored by Murat Ulgen, Chief Economist. (BRIC nations are Brazil, Russia, India and China.)
China’s output rose only marginally, as has been the trend since the second half of 2011. Moreover, goods production in China fell for the fifth successive quarter, said the report.
Brazilian private sector firms noted a broad stagnation in activity. Little change in output was indicated in both manufacturing and services.
Growth rates stabilised at sub-par levels in both India and Russia. In India, manufacturing posted its worst quarter in July-September, but growth in the service sector accelerated slightly.
Russian manufacturers showed some resilience, registering the strongest quarter in terms of output growth, and outperformed their service sector counterparts for the first time since January 2011.