HSBC Emerging Markets Index
The quarterly HSBC Emerging Markets Index (HSBC EMI) is a market first: we've created a leading economic indicator for the world's emerging market economies, at a time when the rapid progress of the emerging market regions has never been more closely connected, or important, to the development of the global economy.
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HSBC Emerging Markets Index Q4 2011
Stephen King, HSBC's Chief Economist, said: "Emerging markets finished 2011 with only a marginal improvement in economic expansion for the final quarter, emphasising a decline in world trade growth over the year after peaking at the beginning of 2011. Although not recording the previous lows at the height of the recession in late 2008 and early 2009, this quarter's EMI is far from those levels reached in the early months of recovery during late 2009 and early 2010.
"While some have blamed a reduction in emerging market activity on factors beyond their own control, namely the eurozone crisis, and weakness both in the US and UK, the emerging economies themselves have also contributed to a lack of momentum. Additionally, as events in the Middle East increased economic and political uncertainty in the region and also led to elevated oil prices, inevitably emerging nations had to adopt policies to inhibit growth and ease price pressures to avoid inflation.
"These 'quantitative tightening' policies have had some success, replacing the inflationary concerns of policymakers in the emerging markets with new growth fears which are expected to continue during 2012 as the full impact of the eurozone crisis is felt. Although the emerging markets will have much to contend with over the next twelve months, they have retained some firepower to deal with the fallout, with room to cut interest rates and provide fiscal stimulus to provide some 'bounceback-ability' across the region."
Emerging Markets Index
Q4 2011 EMI – key points:
** HSBC Emerging Markets Index reflects little change with only marginal increase to 52.2 in Q4 2011
** Decline in inflation across emerging markets but eurozone crisis casts shadow on growth prospects
** Manufacturing slowdown sharpest since Q1 2009 led by emerging Asia, including China, although India outperformed
** Service sector activity growth increases slightly during Q4 but optimism muted by historic standards
** Slowdown in world trade growth throughout 2011 since peaking at the beginning of the year
Download the full global EMI report Q4 2011 (PDF 2.15MB)
Download the full global EMI press release Q4 2011 (PDF 42K)
Purchasing Managers Index
PMIs move markets and inform the decisions of policy makers and businesses across the globe. They are always more timely than full official data and frequently more reliable.
As the leading emerging markets bank, HSBC recognises the value and importance of accurate data from developing economies so as to ensure a clear picture of economic progress.
HSBC has partnered with Markit, the global financial information services company, to combine best in class, Markit-sourced PMI data with the additional insights created by HSBC's unrivalled network of economists on the ground in emerging markets.
HSBC PMIs now cover 12 of the world's principal emerging markets, including recently launched PMIs for Russia, the United Arab Emirates and Saudi Arabia.
Press Room
Please refer to the Press Room for access to all the latest monthly PMI, quarterly EMI and annual Emerging Markets Insights press releases, HSBC spokespeople biographies and other supporting press materials.
About HSBC in Emerging Markets
HSBC is one of the world's largest banking and financial services organization and the leading emerging markets bank. With an international network comprising some 8,000 offices in 87 countries and territories, HSBC has a strong presence in both developed and emerging markets.
