LONDON, July 7 Business activity in emerging
markets expanded last month at its fastest rate since March
2013, boosted by strong growth in China and India, a survey
showed on Monday.
HSBC's composite emerging markets index of manufacturing and
services purchasing managers' surveys jumped to 52.3 in June -
well above the 50 threshold that indicates expansion - from 50.6
Services activity growth hit a 15-month high and
manufacturing output also rose, HSBC said.
But the index remained below its long-run trend level of
"The improvement in the survey data...suggests that the
emerging economies are joining in the global upturn that has
been led by the developed world," said Chris Williamson, chief
economist at Markit.
"The June data nevertheless point to only modest
growth...and the extent to which emerging market growth
continues to lag the developed world economies remains one of
the greatest that we have seen in the 10-year history of the PMI
The HSBC index is calculated using data produced by Markit,
from purchasing managers at about 8,000 firms in 17 countries.
Among the BRIC emerging market powerhouses, China recorded
its sharpest increase in output for 15 months.
"China is showing the way with a bounce," said Frederic
Neumann, HSBC's co-head of Asian economic research.
"Things should improve from here. But Asia's recovery is
mostly a domestic affair, with exports still slow."
India posted the steepest expansion since February 2013.
Narendra Modi's pro-business BJP party won overwhelmingly in
Indian elections in May, propelling Indian stock markets to
Russian business activity stabilised, after falling at the
strongest rate in five years in May during conflict with
Ukraine, while Brazilian activity was flat.
The future output index, which tracks firms' expectations
for activity in 12 months' time, rose for the first time since
Sentiment towards emerging markets has improved as continued
low interest rates in the western world encourage investment in
But Russia, which has not resolved its conflict with
Ukraine, recorded business expectations at their third-weakest
in the series' 27-month history.
(Reporting by Carolyn Cohn; Editing by Hugh Lawson)