LONDON, June 6 Business activity in emerging
markets expanded at the fastest rate in three months in May,
although growth was weak compared with developed markets and an
index of future expectations hit a new low, a survey showed on
HSBC's composite emerging markets index of manufacturing and
services purchasing managers' surveys rose to 50.6 in May from
50.4 in April, but remained well below its long-run trend level
Manufacturing output rose for the first time in three
months, though at a weak rate, the data showed. In the services
sector, activity increased at the slowest rate since last July.
"The reading of 50.6 in May compares with a developed world
PMI equivalent of 55.4. While the former points to an ongoing
languor that has plagued the emerging markets over the past
year, the developed world has moved into a higher gear and is
now enjoying its strongest growth for just over three years,"
Chris Williamson, chief economist at Markit, said in a
The HSBC index is calculated using data produced by Markit,
from purchasing managers at about 8,000 firms in 17
Among the BRIC emerging markets, China showed a slight
increase in growth for the first time in four months while India
posted its largest rise since June 2013.
Narendra Modi's pro-business BJP party won overwhelmingly in
Indian elections in May, propelling Indian stock markets to
Russia, which has suffered some western sanctions following
the conflict in Ukraine, saw output fall at its fastest rate
since May 2009. Brazilian output was flat.
The future output index, which tracks firms' expectations
for activity in 12 months' time, tumbled to a new low in May.
Brazil, which hosts the soccer World Cup this month and
faces presidential elections later this year, reported the
weakest output expectations among the BRIC economies. China's
future output index hit a new low for the 26 months of data
collection for the series.
(Reporting by Carolyn Cohn; Editing by Hugh Lawson)