The SABB/HSBC Emerging Markets Index (EMI), a monthly indicator derived from the PMI surveys, continued to indicate weak output growth across global emerging markets in May.

The EMI posted 50.6, from 50.4 in April, the highest in three months but well below its eight-and-a-half year long-run trend level of 53.8.

Manufacturing output rose for the first time in three months, albeit at a weak rate. In the service sector, activity increased at the slowest rates since July 2013.

Among the largest emerging markets, China posted a fractional increase in output for the first time in four months, while India posted the most notable growth since June 2013 — but still a weak pace nonetheless. Brazilian output was largely stagnant, while Russian private sector output fell at the fastest rate since May 2009.

New business increased at a slightly faster pace in May, but the rate of growth was still only on a par with the weak average for 2014 so far. Backlogs fell for the fifth month running, albeit only marginally. Meanwhile, employment declined further, and at the strongest rate since June 2009.

According to the SABB/HSBC EMI Index, inflationary pressures remained subdued in May, with input price inflation unchanged from April’s ten-month low. Prices charged increased at the strongest rate in five months, albeit only marginally overall.

May’s survey indicated the continued expansion of the Saudi nonoil producing sector. Output growth picked up to a three-month high, but new business expansion registered a minor slowdown.

The UAE’s nonoil producing private sector companies reported further sharp increases in output and new orders, with the respective rates of growth easing only slightly since April.

Egyptian nonoil producing private sector companies reported further declines in output and new orders in May, with both rates of contraction accelerating since April. Meanwhile, companies lowered their selling prices for the second time in three months and input costs increased at the slowest pace since last October.

South African private sector output and new orders declined again in May, as disruptions caused by mining strikes continued to weigh on demand. That said, the rates of contraction eased since April and were only marginal.