Mexico: Economic activity accelerates in April
July 25, 2012
In April, economic activity expanded 4.7% over the same month last year, according to the IGAE (Indicador Global de la Actividad Economica). The reading came in well above the 3.5% expansion recorded in March and exceeded market expectations, which had economic activity rising 4.2%. The improvement was underpinned by strong growth in the services sector, which accelerated from a 3.9% increase in March to a robust 5.4% expansion in April. In addition, industrial output picked-up to 3.6% growth (March: +3.0% year-on-year), while the agricultural sector moderated, but expanded a still healthy 8.5% (March: +10.8% yoy). A month-on-month comparison, however, does not corroborate the improvement suggested by the annual data, as economic activity increased a seasonally adjusted 0.34% in April, which was well below the 1.94% increase recorded in March. Nevertheless, the trend continues pointing upwards, with annual average growth in economic activity rising from 4.1% in March to 4.3% in April. In its latest inflation report from May, the Central Bank projects the economy to expand between 3.25% and 4.25% this year.