Emerging Manufacturers Fall Sharply in Late 2011

Manufacturing sectors of emerging economies fell the most in almost three years in the fourth quarter of 2011, HSBC Holdings Plc said in its emerging markets index (EMI) on Thursday.

Manufacturing sectors of emerging economies fell the most in almost three years in the fourth quarter of 2011, HSBC Holdings Plc said in its emerging markets index (EMI) on Thursday.

The index, based on surveys in 16 emerging markets, edged slightly higher in the three-month period to 52.2, from 52.0 in the third quarter.

Driven by a reduction in factory output across emerging Asia, manufacturing output in developing states fell for a second successive quarter and at the sharpest pace since the first quarter of 2009.

Manufacturing plunged significantly in Taiwan and South Korea, slowed down in China and Hong Kong and stagnated in Singapore. However, India posted sustainable growth in manufacturing output.

In contrast, service providers saw business activity growth accelerating, but an improved growth rate in service activity only marginally outweighed a further decline in manufacturing output.

China, India and Russia saw their exports grow, but in Brazil exports fell for a third successive quarter.