October EM Data Snapshot: Recovery Faltering.

• The latest activity data suggests that the economic recovery in most emerging markets (EMs) slowed in August and September. Across the EM world, year-on-year manufacturing output growth slowed in late Q321. 
• Slower year-on-year growth is partially due to fading base effects, however, Fitch solutions believes that underlying momentum has weakened in recent months. September’s Purchasing Managers' Index (PMI) surveys, for instance, suggest that conditions in the private sector weakened in Central Europe and, crucially, in China. 
• Few EMs have released trade figures for September, but early data shows that export growth slowed in Brazil and Turkey and picked up a touch in Vietnam. Given escalating supply chain issues and faltering global consumer demand, Fitch expects that figures from elsewhere will show that EM-wide export growth slowed down at the end of Q321.

(Source: Fitch Solutions)