THE WORLD’S fast growth markets like China and India are being dragged down by the global uncertainty caused by the Eurozone crisis, new survey data from HSBC shows today.
Weak demand from key European markets has hit manufacturing output in particular, harming overall growth forecasts.
HSBC’s emerging markets index fell to 51.3 in April, its lowest level for 18 months and well below the 52.5 seen in March. The index is based on a purchasing managers’ index (PMI), a survey of growth where a score of over 50 indicates expansion.
Of the BRICs only Brazil saw an acceleration in the month, and to a modest PMI of 51.5.
“Weaker growth across most advanced markets is now being felt in the emerging world as well. New manufacturing export orders for example, contracted in April after expanding throughout the first quarter of the year,” said HSBC’s Frederic Neumann.