"How gloomy should we be feeling about emerging markets? According to HSBC’s Emerging Markets Index, very. The index – a weighted composite of purchasing managers’ indices from 16 countries – has dipped into negative territory for the first time since the crisis of 2008-09.
Worse, the deterioration was increasingly broad-based across the emerging world. But there were some bright spots amid the gloom – reminding us to be careful when thinking about the emerging markets as if they were one homogeneous group.
The index came in at 49.4 in July, down from 50.6 in June. That’s not good. As PMI followers know, the 50-point line separates expansion from contraction and this is the first time the index has dipped below 50 since April 2009, when it was on the way up.
'via Blog this'
No comments:
Post a Comment