Emerging market growth slows due to manufacturing slump

Ben Southwood
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EMERGING market growth slowed in the second quarter, due to reduced manufacturing growth, according to HSBC’s Emerging Market Index released yesterday.

The overall index slipped to 53, from 53.6 – 50 would indicate no change – with slow manufacturing growth working against robust service growth.

Murat Ulgen at HSBC said: “The manufacturing sector remains considerably below pre-crisis levels despite an improvement on the first quarter.”

“Flat growth for new orders and a contraction in new export orders in manufacturing attest to the global challenges,” he added.

Within the Bric, Brazil and China reported declines in new export orders, compared to rises for India, Russia, Turkey and South Korea. Similarly Brazil recorded the slowest growth in services for three quarters.