INDIA recorded the sharpest contraction in activity for over four years this September, according to HSBC’s emerging markets index, released this morning.
The index suggests that Indian activity declined in every month of the third quarter, seeing the worst period since the middle of 2009.
Emerging markets pointed to another month of meagre expansion. The index rose to 50.8, up from 50.7 in August. Any figure above 50 indicates the developing economies are growing.
Brazil performed best out of the major emerging markets, which also include China, India, Brazil and Russia. Its score indicated that it moved into growth in September, rising by a percentage point to 50.7.
Pablo Goldberg, HSBC’s global head of emerging markets research, commented: “The September PMIs show economic conditions in emerging markets are showing marginal improvement, although the data remains disappointing.”