Mexico: Business confidence softens again but still remains positive
November 4, 2011
Manufacturing continues to grow, but is showing signs of a gradual loss of momentum. In October, the producer confidence indicator (ICP, Indicador de Confianza del Productor) moderated from 53.8 points to 53.0 points, falling closer to the 50-point threshold that separates optimism from pessimism. The reading marked the fourth consecutive decline and brought the index to its lowest level since April last year. Furthermore, in seasonally adjusted terms, the ICP dropped 0.7% over the previous month. Meanwhile, the purchasing managers' index (IPM, Indicador de Pedidos Manufactureros) rose one full point to 53.6 points, partly reversing the previous month's decline. As a result, the index continues to hover above the 50-point threshold that indicates an expansion in the manufacturing sector. A month-on-month comparison, however, does not corroborate the improvement, as the IPM fell 0.48% in seasonally adjusted terms.