Mexico Economic Activity

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Mexico: Economic activity decelerates slightly in July

September 24, 2014

Economic activity in July increased 2.5% over the same month last year, according to INEGI’s monthly economic activity indicator (IGAE). The reading represented a slight deceleration compared to the 2.7% increase observed in June, but beat market expectations of a 2.3% expansion.

July’s slightly lower reading was the result of a slowdown in the services sector, which expanded 2.5% after having increased 3.2% in June. Meanwhile, agriculture expanded at a 7.1% annual rate in July (June: +2.2% year-on-year) and the industrial sector ticked up to a 2.1% expansion (June: +2.0% yoy).

A month-on-month comparison, however, does not corroborate the moderation suggested by the annual data. Economic activity increase a seasonally-adjusted 0.41% in July, which was up a notch from the 0.27% expansion tallied in June.

The trend rose slightly; annual average growth in economic activity edged up from 1.4% in June to 1.5% in July.

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 July 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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