Mexico: Economic activity accelerates in January
March 23, 2012
In January, economic activity increased 4.4% over the same month last year, according to the IGAE (Indicador Global de la Actividad Economica). The reading came in above the 3.5% expansion recorded in December, marking the fastest pace in four months and beating market expectations that had economic activity rising 4.1%. The acceleration was the result of higher output in the industry and services sectors, both of which accelerated markedly compared to December. In contrast, output in the agricultural sector ? which has little weight in the index ? posted an outright contraction in January. On a month-on-month basis, economic activity increased a seasonally adjusted 0.50% over the previous month, which came in above a 0.39% increase in December. Despite the strong January reading, the trend continues to moderate, with annual average growth in economic activity edging down from 4.0% in December to 3.9%. In its latest inflation report from February, the Central Bank projects the economy to expand between 3.0% and 4.0% both this year and next.