Emerging market growth slowed to its weakest level in two years in the second quarter, Markit Economics said Thursday.

The HSBC emerging market index fell to 54.2 in the second quarter from 55 in the first quarter. According to the survey, the slowdown reflected the global economic fragility and the exceptional consequences of the Japanese tsunami.

The moderation in overall activity growth reflected a weaker increase in manufacturing production, with the pace of expansion easing to the slowest in three quarters, the report said. Meanwhile, service providers recorded a slightly faster rise in business activity.

The lingering impact of the recent spike in inflation also contributed to the decline in the index. However, the survey revealed that price pressures have eased sharply due to continued monetary tightening by central banks across the emerging economies.

The survey signaled the most acute easing of input cost inflation for two-and-a-half years, Markit said.

RTTNews