November EM Data Snapshot: PMIs Pick Up, Inflation Worries Rise

• October’s Purchasing Managers' Index surveys suggest that emerging market (EM) manufacturing activity picked up at the start of Q421. This marks a significant improvement, given weak activity data in recent months. 
• The big story in EMs remains inflation, which jumped in September. This spooked bond markets and prompted central banks in Brazil, Colombia, Russia, Poland and Argentina to hike their policy rates. Policymakers in Turkey, by contrast, continued to cut their key rate. 
• While Fitch Solutions maintains their view that inflation will ease next year, it expects that many EM central banks will continue to tighten policy.

(Source: Fitch Solutions)