Mexico: Business confidence softens again but still remains positive
December 2, 2011
In line with developments observed in the United States, the Mexican manufacturing sector continues to expand. In November, the producer confidence indicator (ICP, Indicador de Confianza del Productor) picked up to 53.8 points from 52.9 points in October. With this month's increase, the index moved away from the 50-point threshold that separates optimism from pessimism. Moreover, a month-on-month seasonally adjusted comparison corroborates an improvement, with the ICP increasing 1.2% over the previous month. Meanwhile, the purchasing managers' index (IPM, Indicador de Pedidos Manufactureros) dropped from 53.6 points in October to 52.1 points in November. Although contrasting the rise in the ICP, the reading continues to hover above the 50-point threshold, thereby confirming an expansion in the manufacturing sector.