India registers fourth successive decline in output in October: HSBC EMI
Updated: Nov 07, 2013 02:57:03pm
New Delhi, Nov 7 (KNN) According to the HSBC Emerging Markets Index (EMI), India registered a fourth successive decline in output in October. October data indicated falling levels of production and new orders in the Indian manufacturing economy, as the internal business climate remained tough. However, there was some positive news on the export front as foreign orders grew for the first time since July.
The HSBC EMI, a monthly indicator derived from the PMI surveys, signalled the fastest rise in output in seven months in October of the emerging markets.
“At 51.7, the EMI remained well below its long-run trend level of 54.0. But the latest figure represented an improvement on the trend shown over Q3 (50.3), the lowest of any quarter since Q1 2009 during the global financial crisis,” said the report released today.
Both manufacturing production and services activity registered stronger rates of expansion in October, reaching six- and seven-month highs respectively.
On the other hand, China registered a stronger increase in output in October. Notably, new export orders at manufacturers rose at the fastest rate in nearly a year.
Of the other largest emerging economies, Russia and Brazil posted sharper increases in activity, but India registered a fourth successive decline in output.
Meanwhile, new PMI data for South Africa signalled a recovery in private sector growth, following a contraction in September.
New business growth across global emerging markets also rose at the strongest rate in seven months in October. This led to the first overall rise in employment in four months, and a stable trend in backlogs of work.
The rate of input price inflation eased in October, but was the second-fastest in eight months. Output prices rose for the third month running, but at a slower rate than in September.
Meanwhile, according to the HSBC Emerging Markets Future Output Index, a new series tracking firms‟ expectations for activity in 12 months” time, “The index rebounded to a seven-month high in October, having hit a near-record low in September. Service sector business sentiment improved to an eight-month high, while the outlook for goods production was the weakest in three months.”
Among the largest emerging markets, Brazil registered the strongest sentiment, driven by buoyant services sector expectations. Output expectations also improved in China and India, but deteriorated in Russia.
“Our worries over emerging markets reliant on external funding for large fiscal and current account deficits persist despite reduced tapering fears. Indeed, of the “fragile-five” emerging market economies, Brazil and Indonesia recorded a modest pick-up in manufacturing activity from a low base, while Turkey and South Africa, decelerated and India contracted for a sixth consecutive month,” said HSBC Chief Economist, MENA, Simon Williams. (KNN/SD)
The HSBC EMI, a monthly indicator derived from the PMI surveys, signalled the fastest rise in output in seven months in October of the emerging markets.
“At 51.7, the EMI remained well below its long-run trend level of 54.0. But the latest figure represented an improvement on the trend shown over Q3 (50.3), the lowest of any quarter since Q1 2009 during the global financial crisis,” said the report released today.
Both manufacturing production and services activity registered stronger rates of expansion in October, reaching six- and seven-month highs respectively.
On the other hand, China registered a stronger increase in output in October. Notably, new export orders at manufacturers rose at the fastest rate in nearly a year.
Of the other largest emerging economies, Russia and Brazil posted sharper increases in activity, but India registered a fourth successive decline in output.
Meanwhile, new PMI data for South Africa signalled a recovery in private sector growth, following a contraction in September.
New business growth across global emerging markets also rose at the strongest rate in seven months in October. This led to the first overall rise in employment in four months, and a stable trend in backlogs of work.
The rate of input price inflation eased in October, but was the second-fastest in eight months. Output prices rose for the third month running, but at a slower rate than in September.
Meanwhile, according to the HSBC Emerging Markets Future Output Index, a new series tracking firms‟ expectations for activity in 12 months” time, “The index rebounded to a seven-month high in October, having hit a near-record low in September. Service sector business sentiment improved to an eight-month high, while the outlook for goods production was the weakest in three months.”
Among the largest emerging markets, Brazil registered the strongest sentiment, driven by buoyant services sector expectations. Output expectations also improved in China and India, but deteriorated in Russia.
“Our worries over emerging markets reliant on external funding for large fiscal and current account deficits persist despite reduced tapering fears. Indeed, of the “fragile-five” emerging market economies, Brazil and Indonesia recorded a modest pick-up in manufacturing activity from a low base, while Turkey and South Africa, decelerated and India contracted for a sixth consecutive month,” said HSBC Chief Economist, MENA, Simon Williams. (KNN/SD)
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