Emerging market output growth slips to 52.4 in December
This is attributed to slower manufacturing output growth, S&P Global said.
The GDP-weighted Emerging Market PMI Output Index decreased to 52.4 in December, down from 52.8 in the previous month, mainly due to slower manufacturing output growth, according to S&P Global’s report.
Emerging markets posted relatively slower growth for the first time in three months compared with developed economies.
The report also noted that although emerging markets’ manufacturing sector outperformed the developed markets—the latter seeing goods output contract at a sharper pace at the end of 2024—developed markets’ services activity growth accelerated at a faster pace than the emerging market, contributing to the outperformance.
Although November saw the fastest growth in factory production in emerging markets since July, this growth slowed to a near-neutral level by the end of 2024 due to the fading impact of global manufacturers rushing to increase production ahead of possible US tariffs following the US election.
This was reflected in the manufacturing new export orders gauge for emerging markets, which posted above the 50-neutral mark in November to indicate expansion before falling back into contraction in December.
India was the only country to experience a growth acceleration from November, maintaining its position at the forefront for the 30th consecutive month. This was driven by its service sector after its manufacturing sector posted the weakest growth rate in 2024.
Meanwhile, Brazil, Mainland China, and Russia all experienced a slowdown in their growth rates from November. Specifically, Mainland China’s manufacturing output growth eased to only a marginal pace due to the fading impact of tariff-related boosts, whilst service activity growth strengthened.
However, Brazil saw the most pronounced growth softening from November, as both its manufacturing and service sectors experienced an easing of growth from a solid pace.
