Mexico: Economic activity cools in August
The monthly indicator for economic activity (IGAE) rose 1.1% in month-on-month, seasonally-adjusted terms in August, below July’s 5.7% jump.
August’s result reflected the sustained recovery in activity amid the easing of Covid-19 restrictions, though with signs that momentum is waning. The moderation was driven by a contraction in agricultural-sector output, a cooling industrial sector and stalling services activity.
On an annual basis, economic activity fell 9.4% in August (July: -9.9% yoy). Meanwhile, the trend continued to deteriorate, with the annual average variation of economic activity coming in at minus 6.7% in August, down from minus 6.0% in July.