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Composite Activity Signals Weakening Of Growth In BRIC

Having covered Manufacturing PMIs and Services PMIs for BRIC economies, let's take a look at the composite measure of PMIs.

First, the combined composite measure for all BRIC economies. The measure is based on a sum of Services and Manufacturing PMIs for each country, weighted by the relative size of each economy (as a share of the global GDP, based on IMF data).

(click to enlarge)

As the chart above shows, the composite measure of PMI-captured activity has fallen for the BRIC group from 102.3 in December 2014 to 101.1 in January 2015. The 3-month average through January stood at 101.9 against 102.5 in the 3-month period through October 2014 and 100.8 in the 3 months through January 2014. Since July 2013, the recovery in BRIC PMIs was weak and volatile, with a downward trend setting in from June 2014.

Next, consider disaggregated PMIs for Russia as opposed to BRIC-ex-Russia:… Read More …