Mexico: Economic activity decelerates further in October
December 22, 2016
Mexico - October’s monthly proxy GDP (IGAE) produced by INEGI decelerated from a 1.6% year-on-year increase in September to a 1.2% expansion in October and fell also short of the 1.4% rise the markets had expected. October’s lackluster result continued to reflect a disappointing industrial sector, while growth in agriculture and services moderated their pace of expansion.
In sequential terms, economic activity—adjusted for seasonal variations—increased 0.2% over the previous month in October, which was down from the 0.5% rise in September.
All in all, October’s result suggests that GDP weakness carried over into Q4 and that the overall trend in economic activity is starting to moderate. Annual average growth in economic activity was unchanged at September’s 2.2% in October, which suggests that this is Mexico’s “new normal” growth rate.
Author: Ricardo Aceves, Senior Economist