|Follow us on:|
The HSBC Emerging Markets Index (EMI), a monthly indicator derived from the PMI surveys stood at 52.6 in March, a minuscule increase from the February reading when it stood at 52.4.
The HSBC composite manufacturing and services PMI for China increased in March to 53.7 from 51.4 the previous month.
In India it stood at 51.4 in March, Brazil also at 51 and Russia at 53.4 – an index measure of above 50 indicates expansion.
“Manufacturing across emerging markets showed signs of stabilisation in March after cooling the previous month. In part, the lift reflects stronger activity in China, where the Lunar New Year holidays had dampened output previously,” HSBC co-head of Asian economic research Frederic Neumann said.
In contrast, among the developed nation, financial uncertainties continue to weigh on growth in Europe; in the United States, the latest surge in business investment may be fading while demand will be impacted by fiscal cutbacks.
“These challenges are already reflected in the details of the latest Emerging Markets Index. Despite the lift from China, growth of both new orders and employment remained moderate,” Neumann said.
Neumann added that: “none of this is to suggest that the emerging markets boom is about to run out of steam.??But the latest Emerging Markets Index highlights, yet again, the growing importance of China amid the ongoing drag from more developed economies in the West”.
Meanwhile, business expectation for the next 12 months continue to be robust for Chinese businesses.
Outlook for India was the strongest overall among the four BRIC countries, but the pace has moderated since February.
Business growth in emerging markets witnessed a moderation in March although employment continued to rise, HSBC said.