Economic activity in the emerging market increased at a faster pace in January, with both the manufacturing sector and the service sector recording stronger growth, data from a survey by HSBC Bank and Markit Economics showed Wednesday.
The seasonally adjusted purchasing managers' index (PMI) for the emerging market economy increased to 53.9 in January from 53 in December, hitting the highest level since February 2012. An index reading above 50 indicates expansion, while one below suggests decline.
The overall growth was broad-based across service providers and manufactures, with the service sector posting the strongest growth in four months. At the same time, the manufacturing sector expanded for the third successive month, marking the fastest expansion since May 2011.
New business received by businesses in the emerging increased at the fastest pace in 22 months in January. The rate of input price inflation at service providers eased slightly during the month, while cost inflation in the manufacturing sector rose to a 15-month high.
Firms raised their workforces further in January, continuing the trend started in August 2009. Manufacturers raised employment for the second straight month running.
"After a difficult 2012, economic conditions in the emerging markets are continuing the improvement
which began last August," Global Head of Emerging Markets Research Pablo Goldberg said. "Both manufacturing and service readings suggest economic activity is not just being supported by resilient domestic conditions, but also now by a pick up in new export orders."
The survey revealed that that the Composite Future Output Index, which tracks firms' expectations for activity in the next 12 months, improved to a two-month high in January, signaling strong overall degree of positive sentiment among companies in emerging markets.
by RTT Staff Writer
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