April Was The Slowest Month For Emerging Market Growth In More Than A Year According To New Research From HSBC

Getty/Stanley Chou

Emerging markets had their worst month for growth in more than a year during April, according to data released today by HSBC.

The HSBC Emerging Markets Index (EMI), a monthly indicator derived from the PMI surveys, fell to 51.3 in April, from March’s 52.5.

HSBC said the result signals a slowdown in economic growth in global emerging markets, to the weakest level for over a year-and-a-half.

Source: HSBC

“Weaker economic growth across most advanced markets is now being felt in the emerging world as well,” said Co-Head of Asian Economic Research Frederic Neumann in a statement.

“New export orders in the manufacturing sector, for example, contracted in April after expanding throughout the first quarter of the year.

“While this could be shrugged off as a temporary correction in the trade cycle, the softness of service sector PMIs suggests that a broader, more home-grown deceleration is occurring
across emerging markets as well, even if they are still expanding for the most part,” he said.

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