Mexico: Economic activity accelerates in February
April 26, 2016
Mexico’s economic activity, measured by INEGI’s monthly economic activity indicator (EGAE), surged 4.1% year-on-year in February, which marked a notable acceleration over the 2.2% expansion registered in January. The reading also overshot the 3.0% increase the markets had expected. According to INEGI, the monthly acceleration was mainly the result of faster growth in manufacturing and services. The goods-producing sector expanded at the fastest pace in 14 months and growth in Mexico’s services providers was the fastest in nearly three years. That said, the agricultural sector lost momentum in February.
A month-on-month comparison showed that economic activity expanded a seasonally-adjusted 0.2% in February, which came in below the 0.6% rise seen in January. The increase in January had registered the fastest pace since August 2015.
The trend continued to suggest that growth in economic activity remains stable, albeit solid. Annual average growth in economic activity inched up from 2.5% in January to 2.6% in February.
Author: Ricardo Aceves, Senior Economist