Mexico: Economic activity accelerates in April
June 23, 2016
Mexico’s economic activity, measured by INEGI’s monthly economic activity indicator (EGAE), increased 3.0% year-on-year in April, which marked an acceleration over the 1.2% expansion registered in March. The reading came in below the 3.4% increase the markets had expected. According to INEGI, the monthly acceleration was mainly the result of a return to growth in the manufacturing and agricultural sectors, which had experienced steep contractions in March. The services sector grew at a faster pace than in March.
A month-on-month comparison showed that economic activity contracted a seasonally-adjusted 1.2% in April, which came in below the 0.2% contraction seen in March. April’s reading marks the steepest contraction recorded in over seven years.
The trend continued to suggest that growth in economic activity remains broadly stable. Annual average growth in economic activity inched up from 2.4% in March to 2.5% in April.
Author: Christopher Mc Innes, Economist