Wednesday, September 3, 2014

3/9/2014: BRIC Services PMIs and Composite Activity: August 2014


Earlier this week I covered Manufacturing PMI for August for BRIC countries (http://trueeconomics.blogspot.ie/2014/09/192014-bric-manufacturing-pmis-august.html). Here is the summary of Services PMIs.


  • Brazil Services PMI lipped to 49.2 in August down from 50.2 in July. The change is significant and indicates a serious drop in overall activity m/m. Brazil is the worst performer in the Services PMIs in the group. The country Services sectors showed exactly the opposite move to the Manufacturing sectors which posted a rise in PMIs from 49.1 in July to 50.2 in August. On a 3 month basis, 3 mo average through August 2014 in Services stood at 50.3, which is down on 50.7 average for the 3 months through May and unchanged in the 3mo average through August 2013.
  • Russian Services PMI posted a rise from 49.7 in July to 50.3 in August. Summary of Russian services PMI and composite PMI is here: http://trueeconomics.blogspot.ie/2014/09/392014-russian-services-composite-pmis.html
  • China Services PMI improved from 50.0 in July to 54.1 in August, the largest rise in the group and the strongest performance. This represents 106th consecutive month of readings at or above 50.0. Current 3mo average is at 52.4 which is ahead of the 3mo average through May 2014 (51.3) and the 3mo average through August 2013 (51.8). Services sector improvement was offset partially by deterioration in growth conditions in Manufacturing as noted in the first link above.
  • India Services PMI slipped from 52.2 in July to 50.6 in August. However, down to stronger performance in June-July, 3mo average through August currently stands at 52.4 which is significantly better than the 3mo average through May 2014 (48.8) and the 3mo average through August 2013 (49.1). 
Chart to illustrate

Combining the Manufacturing and Services PMIs into a simple summary index:

And a summary table of changes:
Overall, BRIC economies posted rather weak performance in August that is consistent with a modest improvement in conditions on July. Only Manufacturing PMI for China shows substantial activity expansion.

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