JEDDAH — Output growth in global emerging markets slowed further in November, according to SABB/HSBC survey data. The SABB/HSBC Emerging Markets Index (EMI), a monthly indicator derived from the PMI surveys, slipped for the second month running to 51.2, signaling the weakest rate of expansion since May. The EMI remained well below its long-run trend level of 53.7, and 2014 looks set to record the lowest annual average for the Index since its inception in November 2005. Manufacturers and service providers in emerging markets both registered slower, identical rates of output expansion in November. Data for the four largest emerging economies showed contrasting activity trends in November. China registered growth for the seventh month running, but at the weakest rate since May. India posted the fastest growth since June, while Russia and Brazil both registered sharper rates of decline. On a brighter note, the SABB/HSBC EMI Index recorded new business growth picking up from October's five-month low, with both manufacturing and services showing faster rates of expansion. That said, backlogs of work fell at the fastest rate since July 2013 and employment declined for the first time since May. Inflationary pressures remained subdued in November. Input price inflation edged up to a three-month high, but remained historically weak. Output prices rose following October's decline, but at only a marginal rate. The UAE non-oil private sector economy continued to record a marked improvement in business conditions mid-way through the final quarter of 2014. The overall strength of the current upturn lost some momentum from October's survey-record pace, but nevertheless remained substantial. Cost pressures meanwhile eased to a 17-month low, with both purchase prices and labor costs rising more slowly. The SABB/HSBC EMI Index indicated that growth of Saudi Arabia's non-oil private sector economy was sustained during November, but at a slower pace as output, new orders and employment have all increased but at a weaker rate. Egypt's non-oil private sector companies reported further growth of output and new orders in November, but the rates of expansion slowed and were marginal. Employment levels also increased fractionally and companies were able to further reduce their backlogs. Meanwhile, firms lowered their selling prices for the first time in five months and input costs rose at one of the slowest rates in the survey's history. November data signaled a continuation of the upturn in South Africa's private sector that started in August. That said, growth of output and new orders eased to the lowest in three and four months respectively. Growth of new export orders remained subdued in November. — SG
