HSBC EMI Idex drops to 49.4
HSBC Emerging Markets Index (EMI) has fallen to its lowest level since the global financial crisis. This is the first time since the crisis in 2009 that the figure has dropped below 50 showing contraction. The EMI's weakest outcome for 4 years is due to a drop in manufacturing in Asia with goods production also falling in Brazil and Mexico.
Employment from June has been broadly unchanged in the emerging markets with manufacturing job losses offset by employment growth in the service sector.
Frederick Neumann Co-Head of Asian Economic Research for HSBC said "The main risk for emerging markets at the moment is that the cyclical downturn in manufacturing and softer service-sector activity will ultimately lead to a weaker job market."
For more infomation please visit the HSBC website: http://www.hsbc.com/news-and-insight/2013/emi-drops?WT.ac=HGHQ_Hn3.1_On