Mexico: Business confidence remains strong
July 4, 2011
The manufacturing sector continues to gather momentum, following a slowdown in April in the wake of the Japanese disaster. In June, the producer confidence indicator (ICP, Indicador de Confianza del Productor) increased a notch to 57.1 points, rising to its highest level in four years. A seasonally adjusted analysis corroborates the improvement, as the index grew 0.18% over the previous month, mainly fuelled by a more positive outlook regarding respondents' own prospects as well as those for the overall economy. The index has sat above the 50-point threshold since March 2010, indicating that managers in the manufacturing sector remain optimistic. Results from the purchasing managers index (IPM, Indicador de Pedidos Manufactureros) confirm the positive developments observed in the manufacturing sector, as the index rose for the second month in a row, up from 53.8 points in May to 55.2 points in June. An index above the 50-point threshold indicates that the manufacturing sector is expanding.