HSBC Emerging Markets Index: Q3 2011

The HSBC EMI provides emerging market intelligence on Markit PMI data.


The HSBC emerging markets index (EMI) is not as weak as it was during the 2008/09 financial crisis but it has nevertheless softened yet again, reaching a nine-quarter low in the third quarter of 2011. The main culprit is manufacturing where the latest reading points to an outright contraction. Services are still expanding, but at a much-reduced rate. The level of activity is now worryingly soft.


Key findings include:

  • Activity growth eases for third quarter in a row. Manufacturing output falls
  • New business increases at slowest rate for nine quarters in Q3 2011
  • Marginal backlog depletion recorded across both manufacturing and services
  • Job creation slows to marginal pace, as manufacturing employment stagnates
  • Further easing of input cost inflation across the emerging world in Q3 2011
  • Emerging market companies’ pricing power weakens
  • New export business down for first time since Q2 2009
  • Growth of purchasing activity slows to near-stagnation
  • Further depletion of finished goods holdings at emerging market manufacturers
  • Input stocks fall at accelerated pace in Q3
  • Lead times lengthen at the slowest rate since Q3 2009
  • Service sector business optimism dips to three-quarter low


To compare Q3's performance with Q2 2011, download the HSBC Emerging Markets Index: Q2 2011 here.

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