Mexico: Business confidence rises to highest level since 2007
May 3, 2011
In May, the producer confidence indicator (ICP, Indicador de Confianza del Productor) rose to 57.0 points, which represents the strongest reading in four years. As a result, the figure climbed further above the 50-point threshold that indicates managers in the manufacturing sector are optimistic. Furthermore, a seasonally adjusted analysis corroborates the strong print, as the index added 1.68% over April, mainly fuelled by a better assessment of investment conditions as well as about the outlook for the overall economy. Meanwhile, the purchasing managers index (IPM, Indicador de Pedidos Manufactureros) climbed from 51.2 points in April to 53.6 points in May, thus recovering part of the terrain lost in April as well as rising further above the 50-point threshold that indicates the manufacturing sector is expanding. However, a seasonally adjusted comparison does not corroborate the improvement, as the IPM fell 0.67% over the previous month.