Mexico: Business confidence moderates in April but sentiment remains optimistic
May 3, 2011
In April, the producer confidence indicator (ICP, Indicador de Confianza del Productor) dropped to 56.2 points from 56.9 points in March. A seasonally adjusted analysis corroborates the deterioration, as the index fell 1.79% over March, mostly due to respondents' weaker assessment of the overall economy and deteriorating prospects for the coming year. In addition, firms were also less optimistic about making investments. That said, despite the drop the index remains above 50 points, suggesting that managers in the manufacturing sector remain optimistic. Meanwhile, the purchasing manager's index (IPM, Indicador de Pedidos Manufactureros) decreased from 55.8 points in March to 51.5 points in April. According to INEGI, however, the sharp decline responded to normal seasonal factors. Hence, a month-on-month analysis does not corroborate the notion of deterioration, with the IPM rising a seasonally adjusted 0.52% over the previous month. The April data for both the ICP and the IPM are based on a revised methodology and may therefore not correspond to figures reported earlier.