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.
Author: Ricardo Aceves, Senior Economist