Mexico Economic Activity


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.

The government expects the economy to grow 2.7% in 2014 while the Central Bank (Banxico) sees the economy growing between 2.3% and 3.3%. LatinFocus Consensus Forecast panelists’ projection is in line with the Bank’s assessment. They see the economy expanding 3.1% in 2014, which is unchanged from last month’s forecast. For 2015, the panel expects growth to pick up to 3.9%.

Author:, Senior Economist

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Mexico Economic Activity Chart

Mexico Economic Activity May 2014

Note: Year-on-year changes and annual average growth rate of monthly economic activity in %.
Source: Mexico National Statistics Institute (INEGI)

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