China output offsetting slower growth: HSBC survey

LONDON Thu Apr 4, 2013 6:29am IST

An employee works at a textile mill in Jiujiang, Jiangxi province, March 28, 2013. REUTERS/China Daily

An employee works at a textile mill in Jiujiang, Jiangxi province, March 28, 2013.

Credit: Reuters/China Daily

Related Topics

Coal Mining In The Punjab

Coal Mining In The Punjab

In Choa Saidan Shah miners dig coal with crude pick axes and load it onto donkeys to be transported to the surface earning a team of 4 workers around $10 to be split between them.  Slideshow 

LONDON (Reuters) - Stronger manufacturing and services output in China helped lift emerging market business confidence in March, masking slower growth in Brazil, Russia and India, a monthly purchasing managers' survey showed.

The HSBC Emerging Market Index (EMI) survey, which collects data from purchasing managers at about 7,500 firms in 16 emerging markets, showed on Thursday that strong manufacturing output from China helped boost growth in neighbouring south-east Asian economies including Korea, Taiwan, Indonesia and Vietnam.

HSBC's composite manufacturing and services PMI for the world's second-largest economy increased in March to 53.7 from 51.4 the previous month.

That helped lift the HSBC EMI index to 52.6, from 52.4 the previous month.

"Manufacturing across emerging markets showed signs of stabilisation in March after cooling the previous month," said Frederic Neumann, Co-Head of Asian Economic Research at HSBC, adding that Lunar New Year holidays had dampened output previously.

Neumann said economies especially sensitive to changes in demand in China, including Korea, Taiwan, Indonesia and Vietnam, also showed gains in March.

Export orders PMIs above 50 - the level which separates expansion from contraction - were recorded in 14 of 16 countries surveyed, with South Korea and Vietnam posting expansions compared with contractions the previous month.

Manufacturing output increased in India and Brazil, but faltered in Russia, the survey showed.

"None of this is to suggest that the emerging markets boom is about to run out of steam. But the latest Emerging Markets Index highlights, yet again, the growing importance of China amid the ongoing drag from more developed economies in the West," Neumann added.

A new indicator, the HSBC Emerging Markets Future Output Index, which tracks firms' expectations for activity in 12 months' time showed stronger sentiment in China.

The survey showed the business expectations outlook for India was the strongest overall among the four BRIC economies - Brazil, Russia, India and China - while expectations rose for a third consecutive month in March in China.

Manufacturing output expectations for the next 12 months were the strongest in Saudi Arabia, Indonesia, Mexico, the United Arab Emirates and Vietnam, the survey showed.

The weakest outlooks for manufacturing were registered in Russia, Brazil, Egypt, South Korea and the Czech Republic.

The index is calculated using data produced by Markit. (Reporting by Philip Baillie; Editing by Helen Massy-Beresford)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

WTO Row

WTO Row

U.S. raises stalled WTO talks with India, no sign of breakthrough  Full Article 

Fed Policy

Fed Policy

Fed presses forward with bond buying, cites uptick in inflation.  Full Article 

Q2 Profit Slips

Q2 Profit Slips

Samsung sees tough second half  Full Article 

Chinese Economy

Chinese Economy

China should set lower 2015 GDP growth target of 6.5-7 percent - IMF  Full Article 

Default Imminent

Default Imminent

Argentina fails to reach debt agreement   Full Article 

Economy Reboots

Economy Reboots

U.S. economy back on track with strong second-quarter rebound  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage