Key points

- Emerging markets output highest for a year.

- Employment increases for first time in 12 months.

- HSBC EMI surges from 50.7 in Q2 to 55.3 in Q3.

"Emerging markets continue to power the growth in the global economy."

- Michael Geoghegan, HSBC Group CEO

Summary

HSBC, the world's leading international emerging markets bank, today launched the largest survey of emerging markets economic data - the HSBC Emerging Markets Index (EMI) - which suggests emerging markets are likely to lead the global economic recovery.

Compiled with data from over 5,000 purchasing managers from companies in 13 countries, the HSBC EMI is a powerful indicator of the economic and business health of the world's emerging and fast growing markets. This new index shows that emerging markets output in Q3 recorded a robust rise and that forward indicators point to further improvement in Q4.

Stephen Green, Group Chairman of HSBC Holdings plc, said: "As the world's economic centre of gravity shifts from West to East, the economic strength of emerging markets will play an increasingly central role in the development of financial markets and international relations. The HSBC Emerging Markets Index provides a unique snapshot of the economic heartbeat of emerging markets."

HSBC, which serves over 100 million customers in 86 countries and territories, was founded in Hong Kong and Shanghai in 1865. It is the world's largest international emerging markets bank. It is the leading international bank in China, the largest international bank in Asia and the Middle East and has more than 4,000 offices across Latin America.

Michael Geoghegan, Group Chief Executive of HSBC Holdings plc, said: "It makes perfect sense for HSBC to create this powerful economic indicator. As I travel through Asia, Latin America and the Middle East this month, it is clear to me that these economies have real dynamism and momentum today compared to some misfiring economies in the West. The first ever HSBC Emerging Markets Index shows that emerging markets continue to power the growth in the global economy."

The HSBC EMI surged from 50.7 in Q2 to 55.3 in Q3, signalling the strongest quarterly increase in emerging market manufacturing and service output since Q2 of last year. The index has rebounded sharply from an all-time low of 43.8 recorded in the final quarter of last year and 44.3 in Q1. Any reading below 50 indicates a contraction of output during the quarter while readings above 50 signal expansion.

Stephen King, HSBC's Chief Economist, said: "Although the US remains the most important trading partner for many emerging nations, its relative importance is declining.