India expanded at a slower pace than China in August: Survey
Updated: Sep 04, 2014 03:29:31pm
New Delhi, Sept 4 (KNN) Emerging markets registered stronger growth in manufacturing as well as services during August but India expanded at a slower pace than China during the month, said a survey adding that India registered weak output expectations in comparison with the trends shown over the past two-and-a-half years.
The HSBC Emerging Markets Index (EMI), a monthly indicator derived from Purchasing Managers' Index surveys, compiled by Markit, rose to a 17 month high of 52.5 in August, up from 51.7 in July, signalling stronger growth of output across global emerging markets.
Among the largest emerging markets, China posted the fastest growth since March 2013. Output in Russia and India rose at weak rates, while a marginal contraction was signalled for the fifth month running in Brazil.
During August, the HSBC composite index for India, which maps both manufacturing and services, stood at 51.6, whereas for China it was 52.8, Brazil (49.6) and Russia (51.1). An index measure of above 50 indicates expansion.
Service sector output in emerging markets rose at a stronger rate in August, with growth almost matching June's 15-month high, while manufacturing output rose at a rate unchanged from July's eight-month high.
Output at Indian manufacturing companies rose for a tenth straight month in August, and at the second-sharpest rate since February 2013. August data also signalled that new orders increased for a tenth month in succession, the survey said.
Output expectations of Chinese manufacturers were broadly in line with the trend shown since the series started in April 2012, improving to a six-month high in August.
Among the emerging economies surveyed, Egypt posted the strongest sentiment in relative terms in August, followed by Indonesia and the Czech Republic. In contrast, Brazil, Saudi Arabia, the UAE, India, South Korea and Turkey all registered weak output expectations in comparison with the trends shown over the past two-and-a-half years, the survey added.
"The pace of economic growth in emerging markets continued to revive from the stagnation seen earlier in the year. August saw the fastest pace of expansion for 17 months, buoyed by growth moving up a gear in China's services economy," Markit Chief Economist Chris Williamson said.
"Growth was also recorded in India, albeit with the pace of expansion moderating. However, the renewed growth trend in recent months represents a welcome improvement from the prior downturn," Williamson said.
Meanwhile, the outlook for global emerging markets continued to deteriorate, as per the report.
"Growth in Asia remains below potential. Weak manufacturing requires more policy support and may impede the progress of structural reforms," HSBC Co-Head of Asian Economic Research Frederic Neumann said. (KNN/SD)
The HSBC Emerging Markets Index (EMI), a monthly indicator derived from Purchasing Managers' Index surveys, compiled by Markit, rose to a 17 month high of 52.5 in August, up from 51.7 in July, signalling stronger growth of output across global emerging markets.
Among the largest emerging markets, China posted the fastest growth since March 2013. Output in Russia and India rose at weak rates, while a marginal contraction was signalled for the fifth month running in Brazil.
During August, the HSBC composite index for India, which maps both manufacturing and services, stood at 51.6, whereas for China it was 52.8, Brazil (49.6) and Russia (51.1). An index measure of above 50 indicates expansion.
Service sector output in emerging markets rose at a stronger rate in August, with growth almost matching June's 15-month high, while manufacturing output rose at a rate unchanged from July's eight-month high.
Output at Indian manufacturing companies rose for a tenth straight month in August, and at the second-sharpest rate since February 2013. August data also signalled that new orders increased for a tenth month in succession, the survey said.
Output expectations of Chinese manufacturers were broadly in line with the trend shown since the series started in April 2012, improving to a six-month high in August.
Among the emerging economies surveyed, Egypt posted the strongest sentiment in relative terms in August, followed by Indonesia and the Czech Republic. In contrast, Brazil, Saudi Arabia, the UAE, India, South Korea and Turkey all registered weak output expectations in comparison with the trends shown over the past two-and-a-half years, the survey added.
"The pace of economic growth in emerging markets continued to revive from the stagnation seen earlier in the year. August saw the fastest pace of expansion for 17 months, buoyed by growth moving up a gear in China's services economy," Markit Chief Economist Chris Williamson said.
"Growth was also recorded in India, albeit with the pace of expansion moderating. However, the renewed growth trend in recent months represents a welcome improvement from the prior downturn," Williamson said.
Meanwhile, the outlook for global emerging markets continued to deteriorate, as per the report.
"Growth in Asia remains below potential. Weak manufacturing requires more policy support and may impede the progress of structural reforms," HSBC Co-Head of Asian Economic Research Frederic Neumann said. (KNN/SD)
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