Economic growth in emerging marketsslowed in the April-June quarter because of weakness in the manufacturing sector as well as below-trend expansion of the services sector, an HSBC survey said.
The HSBC Emerging Markets Index (EMI) slipped to 53.0 inthe second quarter of this calender year, from 53.6 in the January-March period, as a relatively better performance from the services sector was offset by only modest growth in manufacturing in the emerging market economies.
Among the big-four emerging markets, expansion in Brazil and China was lower than India and Russia.
Looking ahead, emerging market service providers remain confident about the one-year business outlook, with the degree of optimism the highest in two years.
However, the extent of positive sentiment remains lower than in any quarter prior to the onset of the financial crisis. Of the big-four emerging markets, service sector optimism was strongest in Brazil and India, the HSBC report added.