The HSBC Emerging Markets Index (EMI), a monthly indicator derived from the PMI™ surveys, rose from 53.0 in December to 53.9 in January. That was the highest figure since February 2012, and only slightly lower than the seven-year long-run average of 54.2.


Data broken down by broad sector showed that growth was broad-based across service providers and manufacturers, as the latter posted a third successive month of expansion and the fastest pace of growth since May 2011. Meanwhile the service sector registered the strongest growth in four months.


New business growth in emerging markets accelerated to a 22-month high in January. Manufacturing new orders rose at the fastest rate since April 2011, and across a broad base of economies. Only Egypt, South
Korea, the Czech Republic and Poland posted declines in January.

Cost pressures in emerging markets were at their strongest in three months in January. The rate of input price inflation at service providers eased slightly, while manufacturing input cost inflation hit a 15-month high.

Employment growth was maintained in January, continuing the trend shown since August 2009. Manufacturers raised headcounts for the second month running, the first back-to-back increase in 17 months.

Business expectations
The Composite Future Output Index is a new series tracking firms’ expectations for activity in 12 months’ time. The Index improved to a two-month high in January, signalling a strong overall degree of positive
sentiment among companies in emerging markets. Manufacturers held the best growth expectations since last April (the first month of data collection for the sector), which offset a further easing in sentiment at
service providers.



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