Developing economies slowed in December: report

The output growth in emerging markets slowed in December, as the services sectors in those nations eased up, according to a survey released on Tuesday.

Reuters reports that the composite HSBC emerging markets index of manufacturing and services purchasing managers’ surveys recorded a figure of 51.6 in December. This represented a fall from the November figure of 52.1.

A figure above 50 represents growth while a figure below 50 represents a decrease in activity.

According to Murat Ulgen, HSBC’s chief economist for central and Eastern Europe and sub-Saharan Africa, the figure was affected by slow growth in the Indian and Chinese service sectors.

According to the survey, the Indian services output index has been below 50 for six straight months. And China’s December service sector reading of 50.9 was its lowest since Aug 2011.

On a positive note, manufacturing output was buoyant Taiwan, the United Arab Emirates and Saudi Arabia.

In contrast, High-deficit countries such as Brazil, India and Indonesia were hit by the U.S. Federal Reserve’s plans to wind down its monetary stimulus.

The HSBC survey asks questions of purchasing managers from about 8,000 firms in 17 countries. The index is calculated using data produced by Markit.