8/2/15: BRIC Services PMIs: Poor Performance in January

BRIC PMIs for January are continuing to show divergence in growth across the four economies. I have covered manufacturing sector trends here: http://trueeconomics.blogspot.ie/2015/02/8215-bric-manufacturing-pmis-one-cold.html.

Now, let's take a look at Services PMIs:

• Brazil Services PMI fell to 48.4 in January from 49.1 in December signalling deeper contraction and marking fourth consecutive month of sub-50 readings. Current 3mo average is at 48.7 and this compares poorly to the already contractionary 49.7 3mo average through October 2014. January 2014 3mo average was 51.2. 
• Russian Services PMI dropped significantly from already poor reading of 45.8 in December to strongly contractionary 43.9 in January. 3mo average through January 2015 is at 44.7 and this compares unfavourably to 3mo average through October 2014 at 49.5. We now have 4 consecutive months of sub-50 readings in the series. 3mo average through January 2014 was 52.2. Overall, substantial decline in Services activity as signalled by the PMI reading.
• China Services PMI stayed declined from 53.4 in December 2014 to 51.8 in January 2015. This is the weakest performance since July 2014. 3mo average through January is at 52.7, virtually unchanged on 52.6 average 3 mo reading through October 2014 and an improvement on 51.4 3mo average through January 2014.
• India Services PMI improved from 51.1 in December to 52.4 in January, with 3mo average through January reading at 52.0 - ahead of 3mo average through October 2014 (51.1), and ahead of 3mo average through January 2014 (47.4).
• Overall, Russia (-1.9 points), China (-1.3 points) and Brazil (-0.7 points) posted declines in Services PMIs in January compared to December 2014, while India (+1.3 points) posted an increase. 
• Conclusion: BRIC Services sectors are still suffering from weak growth conditions, similar to those observed in December, with Russia being the weakest, followed by Brazil, and with very weak and weakening growth in China, set against improving growth in India.

Chart and summary table below: