Manufacturing Powers Growth in Emerging Markets

The revival of confidence among both consumers and corporations and the subsequent expansion in manufacturing have helped emerging-market economies to vault back to levels seen before the onset of the global financial crisis.

Manufacturing output and new orders growth in emerging-market economies recorded the highest expansion since the second quarter of 2004, according to the latest HSBC Emerging Markets Index (EMI) from HSBC, a London-based banking and financial services organization.

The growth, combined with robust service-industries data, outperformed developed nations—reaffirming that emerging markets are the vanguard of global economic recovery. The EMI rose to 57.4 in the first quarter of 2010, which was up from 56.3 in the last quarter of 2009 and significantly higher than six quarters ago, when the index dipped to 43.4. Manufacturing output rose to 58.6 from 56.5 and services business activity climbed to 56.5 from 56.1

Meanwhile, the Purchasing Managers’ Index (PMI) data for China and India shows strong manufacturing growth in March, with Chinese output growth supported by a near-record rise in new orders, while input price inflation remained substantial. In India, business conditions continued to strengthen in March, but input cost inflation accelerated to the highest in the five-year series history.

via Manufacturing Powers Growth in Emerging Markets | News | Automation World.

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