India's manufacturing, services growth outpaced China in May: HSBC

Manufacturing and services sectors in India expanded at a faster rate than China's in May even as emerging market output remained stuck in "low gear", an HSBC survey said today.

The HSBC Emerging Markets Index (EMI), a monthly indicator derived from Purchasing Managers' Index surveys, inched up to 50.6 in May from 50.4 in April, indicating weak output growth across global emerging markets.

While the EMI stood at 50.6 in May, the developed world's PMI was at 55.4 during the month.

"While the former (EMI) points to an ongoing languor that has plagued the emerging markets over the past year, the developed world has moved into a higher gear and is now enjoying its strongest growth for just over three years," Markit Chief Economist Chris Williamson said.

During May, the HSBC composite index for India, which maps both manufacturing and services, stood at 50.7, whereas for China it was 50.2, Brazil 49.8 and Russia 47.1. An index measure of above 50 indicates expansion.

"Disappointing performances continued to be seen across the four largest emerging markets in May. The only good news is that China and India both returned to growth, although in both cases the rate of expansion was only very weak. Brazil and Russia meanwhile continued to contract," Williamson said.

Williamson further said that "an ongoing near-stagnation means the emerging markets are, as a whole, underperforming the developed world to the greatest extent ever recorded by the PMI surveys".

New business orders across emerging market economies increased at a slightly faster pace in May. Meanwhile, employment declined further, and at the strongest rate since June 2009.

On price rise HSBC said, inflationary pressures remained subdued in May, with input price inflation unchanged from April's ten-month low. Moreover, prices charged increased at the strongest rate in five months, albeit only marginally, HSBC said.

Meanwhile, the HSBC Emerging Markets Future Output Index that tracks firms' expectations for activity over the next 12 months, fell sharply to a new low in May, with sentiment in the service sector notably weak.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • India’s festivals teach us to share our wealth and joy

    India is an aporia in its own true sense.

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Tushar Gandhi

Sustainable model for rural sanitation

Prime minister Narendra Modi has promised to build a toilet ...

Zehra Naqvi

How smells evoke strong memories

Remember that time when a passing fragrance transported you to ...

Dharmendra Khandal

Indian zoos need a fresh approach

Recently, when a man jumped in a tiger trench of ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture