Emerging markets remained stuck in low gear in May: HSBC

HONG KONG - The HSBC Emerging Markets Index (EMI), a monthly indicator derived from the PMI surveys, continued to indicate weak output growth across global emerging markets in May. The EMI posted 50.6, from 50.4 in April, the highest in three months but well below its eight-and-a-half year long-run trend level of 53.8.

Manufacturing output rose for the first time in three months, although at a weak rate. In the service sector, activity increased at the slowest rates since July 2013. Among the largest emerging markets, China posted a fractional increase in output for the first time in four months, while India posted the most notable growth since June 2013 – but still a weak pace nonetheless.

Brazilian output was largely stagnant, while Russian private sector output fell at the fastest rate since May 2009.

New business increased at a slightly faster pace in May, but the rate of growth was still only on a par with the weak average for 2014 so far. Backlogs fell for the fifth month running, albeit only marginally. Meanwhile, employment declined further, and at the strongest rate since June 2009. www.hsbc.com (ATI).