Mexico: Business confidence remains strong despite modest decrease
August 3, 2011
The manufacturing sector continues to expand vigorously. In July, the producer confidence indicator (ICP, Indicador de Confianza del Productor) edged down to 56.7 points, which was slightly below the four-year high of 57.1 points seen in June. A seasonally adjusted analysis corroborates the modest deceleration, as the index fell 0.65% over the previous month, mainly reflecting a less favorable assessment about the respondent's own current situating as well as prospects for the next twelve months. The index has exceeded the 50-point threshold that indicates managers in the manufacturing sector are optimistic since March 2010. The purchasing managers' index (IPM, Indicador de Pedidos Manufactureros) followed suit and tallied a modest decline, falling from 55.2 points in June to 54.4 points in July. However, the index remains in positive territory, as values above the 50-point threshold indicate that the manufacturing sector is expanding.