Manufacturing and services sectors in India expanded at a slower pace than China in September, even as emerging market output touched an 18 month high in the same month, a report by HSBC said today.
The HSBC Emerging Markets Index (EMI), a monthly indicator derived from Purchasing Managers' Index surveys, stood at 52.5 in September, higher from 52.4 in August.
Moreover, on a quarterly basis the EMI averaged 52.2 in Q3, the best since the first quarter of 2013.
"The September PMI surveys found welcome signs of a renewed upturn in emerging market economies gaining traction, with business activity growing at the fastest rate for a year-and-a-half," Markit Chief Economist, Chris Williamson said.
During July, the HSBC composite index for India, which maps both manufacturing and services, stood at 51.8, whereas for China it was 52.3, Brazil (50.6) and Russia (50.9). An index measure of above 50 indicates expansion.
"The third quarter saw growth in China and India rise to the fastest since early-2013, and Brazil is showing signs of lifting out of its recession," Williamson said.
Latest data signalled that services activity rose at a stronger rate than manufacturing output for the second month running. This was driven by the trend in China, as services activity in Brazil, India and Russia rose at either weak or marginal rates.
"Growth eased in India in September. The average PMI reading in the third quarter was the highest for a year-and-a-half, pointing to a further acceleration of annual GDP growth from the 5.7 per cent pace seen in the second quarter," Williamson added.
Meanwhile, outlook for global emerging markets remained relatively weak in September. The HSBC Emerging Markets Future Output Index tracks firms' expectations for activity in 12 months' time, and was little-changed from August's three-month low at the end of the third quarter.
