Mexico: Economic activity accelerates in May
July 24, 2014
Economic activity increased 1.4% over the same month last year in May, according to INEGI’s monthly economic activity indicator (IGAE). The reading represented an acceleration compared to the 0.5% increase observed in April, but disappointed market analysts, who had expected a 2.0% expansion.
May’s reading was the result of a broad-based improvement. Agriculture expanded 2.7% annually in May (April: +2.0% year-on-year) and services increased 1.2%, which was slightly above the 1.1% expansion tallied in April. The industrial sector swung from a 0.8% contraction in April to a 1.6% expansion in May.
A month-on-month comparison, however, does not corroborate the improvement suggested by the annual data. Economic activity fell a seasonally-adjusted 0.12% in May, which sharply contrasted the 1.13% expansion tallied in April.
The trend rose slightly; annual average growth in economic activity edged up from 1.1% in April to 1.2% in May.
Author: Ricardo Aceves, Senior Economist