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The latest reading from the HSBC Emerging Markets Index shows that the index rose from 53 in December to 53.9 in January, the best reading since February 2012 and within shouting distance of the seven-year long-run average of 54.2. Manufacturers led the growth with a third consecutive month of expansion and the fastest rate of growth since May 2011.

New business growth reached a 22-month high in January and new manufacturing orders rose at the fastest pace since April 2011. On the employment front, manufacturers added jobs in January for the second consecutive month, the first time that has happened in 17 months.

HSBC’s head of emerging markets research said:

After a difficult 2012, economic conditions in the emerging markets are continuing the improvement which began last August. Both manufacturing and service readings suggest economic activity is not just being supported by resilient domestic conditions, but also now by a pick up in new export orders. Export order PMIs were above the critical 50 level in 11 of the 16 economies surveyed, a level not seen since last April.

The HSBC report is can be accessed here.