Category Archives: BRIC PMI

4/5/20: BRIC Manufacturing PMI: April


Coronavirus pandemic has finally bitted deeply into the BRICs economic activity data, with April 2020 manufacturing PMIs coming in sharp down:


Combined, GDP-weighted average Manufacturing PMI for Brazil, Russia, India and China came in at 41.4 in April 2020, down from 49.1 in 1Q 2020 and 51.2 in 4Q 2019. Sharp declines in Brazil Manufacturing PMI (down to 36.0 in April, compared to 50.6 in 1Q 2020), Russia (down from an already-recessionary 47.9 in 1Q 2020 to 31.3 in April), and India (collapsing from 53.9 in 1Q 2020 to 27.4 in April) were also not helped by the continued weakness in China (1Q 2020 PMI was 47.2, albeit March 2020 reading was an encouraging 50.1, down to 49.4 in April). So far, the first month of 2Q 2020 shows no positive indicators for Manufacturing sectors across all BRICs.

However, even with this woeful performance, BRICs managed to post higher PMI (slower decline in the economic activity) than the Global economy. Global Manufacturing PMI in April sunk to 39.8 from 48.4 in 1Q 2020 - a drop of 8.6 points, against BRIC Manufacturing PMI sinking from 49.1 to 41.4 - a drop of 7.8 points.

2/3/20: BRIC Manufacturing PMI: February 2020


A quick post: Manufacturing PMIs are out for the BRIC economies and, unsurprisingly, things are tanking in China and remain seriously under pressure in Russia:


This is the first snapshot of the effects of Coronavirus #COVID19 #CoronaOutbreak on Chinese top-level economic activity figures. The data plotted above is quarter-based averages of the monthly indicator published by Markit. The BRIC quarterly index is computed by me using relative economy size weights for each BRIC economy. In the preceding 3 quarters, BRICs led global manufacturing activity. In 1Q 2020 so far, the BRIC economies as a group have been a drag on global growth.

7/1/20: BRIC Composite PMIs 4Q 2019



Composite Global economic activity, as measured by Composite PMI has slowed down markedly in 2019 compared to 2018. In 2018, average Composite Global PMI (using quarterly averages) stood at 53.6. This fell back to 51.7 in 2019. In 4Q 2019, average Global Composite activity index stood at 51.3, virtually unchanged on 51.4 in 3Q 2019. Overall, Global Composite PMI has now declined in 7 consecutive quarters. 

This weakness in the Global economic activity is traceable also to BRIC economies.

Brazil’s Composite PMI has fallen from 52.0 in 3Q 2019 to 51.5 in 4Q 2019. Things did improve, however, on the annual average basis, 2018 Composite PMI was at 49.6, and in 2019 the same index averaged 51.4. 

Russia Composite PMI has moved up markedly in 4Q 2019, thanks to booming reading for Services PMI. Russia Composite index rose to 52.7 in 4Q 2019 from 51.0 in 3Q 2019. reaching its highest level in 3 quarters. However, even this robust reading was not enough to move the annual average for 2019 (52.3) to the levels seen in 2018 (54.1). In other words, overall economic activity, as signaled by PMIs, has been slowing in 2019 compared to 2018.

China Composite PMI stood at 52.6 in 4Q 2019, up on 51.5 in 3Q 2019, rising to the highest level in 7 consecutive quarters. However, 2019 average reading was only 51.7 compared to 2018 reading of 52.2, indicating that a pick up in the Chinese economy growth indicators in 4Q 2019 was contrasted by weaker growth over 2019 overall. 

India Composite PMI remained statistically unchanged in 3Q 2019 (52.1) and 4Q 2019 (52.0). On the annual average basis, 2018 reading of 52.5 was marginally higher than 2019 reading o 52.2. 



In 4Q 2019, all BRIC economies have outperformed Global Composite PMI indicator, although Brazil was basically only a notch above the Global Composite PMI average. In 2019 as a whole, China, Russia and India all outperformed Global Composite index activity, with Brazil trailing behind.


7/7/19: 2Q 2019 BRIC PMIs: The Bad, The Ugly, and The Uglier Still


BRIC PMIs for June are out and with them we have 2Q 2019 figures. And the story they tell is two-fold:

  • Fold 1: There is an ongoing Global-scale slowdown in the economy that is broad, sharp and testing the waters of a mild recession approaching
  • Fold 2: The BRICs are barely providing any upside support to the Global momentum.
Take Manufacturing:

This is simply the 'Uglier' side of the ugly. Global Manufacturing PMI hit 49.8 in 2Q 2019 - statistically, zero growth level, nominally - a manufacturing recession ward, albeit a very shallow one. More ominously, we now 6 consecutive quarters into declining growth reading. Now, per BRICS: Brazil at 50.9 (holding somewhat just above the water line, but down from 53.0 in 1Q 2019); Russia is at 50.1 - basically zero growth and down from 51.3 in 1Q 2019; India is at 52.2, down from 53.6 in 1Q 2019, and China is at 49.9, having delivered four quarters of statistically zero growth readings. So BRIC GDP shares-weighted Manufacturing PMI is at 50.6, which means the overall Manufacturing sector is barely staying afloat on the choppy growth seas. In 1Q 2019 the same was 51.0 and the 2q 2019 reading is at the lowest level since 3Q 2016.

Services sector posted Global PMI at 52.1. Which sounds like 'growth, but is hardly impressive. 2Q 2019 was the weakest since 4Q 2016, and marks the fourth quarter of shrinking PMI readings.


BRICs: Why, they are barely staying above the Global trend. Brazil is in a statistical Services recession at 48.6 in 2Q 2019, the worst reading in 3 consecutive quarters; Russia posted Services PMI of 51.4 in 2Q 2019 - seemingly respectable, but the lowest reading since 4Q 2015; China Services PMI is at 53.1, basically unchanged on 53.0 in 1Q 2019 (about the only 'british' spot); and India is at 50.3, the lowest for any quarter since 1Q 2018.

All of which means that the Composite activity index reading is a bit of debacle:


Overall, Global Composite PMI fell to 51.5 in 1Q 2019, the lowest reading since 2Q 2016. Dynamics are also bad: Global Composite PMI has now declined every quarter since its local peak of 54.2 in 1Q 2018. And the BRICs are in the same boat: Brazil Composite is at 49.3, the lowest reading in 3 quarters; Russia Composite at 51.2, the lowest in 13 quarters; India Composite at 51.4 is the slowest growth signal in seven quarters; and China is at 51.4 for the lowest reading in 8 quarters.

Not a pretty sight... 

4/3/19: BRIC Manufacturing PMI: January-February Trend


In January-February 2019, Global manufacturing PMI sunk to its lowest reading since 2Q 2016 averaging 50.7 over the first two months of the year. With it, the slowdown has also been impacting the BRIC economies, overall BRIC Manufacturing PMIs average 41.2 in 4Q 2018 based on each country share of the global GDP for 2018, below 51.83 average for Global Manufacturing PMI over the same period. In the first two months of 2019, BRIC Manufacturing PMI was around 50.8, statistically indistinguishable from the 50.7 Global PMI average.


As the chart above clearly indicates, poor BRIC performance was driven by a contraction-territory reading for China (49.1 in January-February 2019 as opposed to stagnation-signalling 50.0 in 4Q 2018), and Russia (50.5 for the first two months of 2019, against 4Q 2018 average of 51.9). In contrast, both Brazil and India outperformed BRIC and Global PMI readings. Brazil's Manufacturing PMI averaged 53.1 in the first two months of 2019 against 52.1 in 4Q 2018, while India's PMI rose to 54.1 in January-February this year against 53.4 in 4Q 2018.

All in, Manufacturing sector leading indicator suggests a major slowdown in the Global growth momentum, and some spillover of this slowdown to Russia and China.  Brazil's robust reading so far marks the fastest pace of expansion since 1Q 2010, on foot of a recovery from a very long and painful recession. India's reading is the highest since 2Q 2012. If confirmed over March and over Services PMI, this implies a major diversion of growth momentum within the BRIC group.