Mexico: Business confidence falls but firms remain optimistic
September 5, 2011
In August, the manufacturing sector continued to expand, albeit at a slower pace, in line with developments taking place in United States. The producer confidence indicator (ICP, Indicador de Confianza del Productor) dropped to 54.2 points, which represents the lowest level since April last year. In seasonally adjusted terms, the index fell 3.37% over the previous month. That said, the ICP continues to linger above the 50-point threshold that indicates managers in the manufacturing sector remain optimistic. Meanwhile, the purchasing managers' index (IPM, Indicador de Pedidos Manufactureros) in August stood at 54.2 points, above the 50-point threshold that indicates the manufacturing sector is expanding. Nevertheless, in seasonally adjusted terms the IPM contracted 4.27%, which represents the sharpest drop since January 2009.