Mexico: Economic activity gathers pace
May 9, 2012
In February, economic activity expanded 6.2% over the same month last year, according to the IGAE (Indicador Global de la Actividad Economica). The robust figure represents the fastest pace since August 2010 and exceeded market expectations of a 5.5% increase. The acceleration was broad-based, with all sectors agriculture, industry and services expanding at a faster pace compared to January. Agriculture in particular improved markedly, swinging from a 3.6% contraction in January to a strong 12.1% increase in February. A month-on-month comparison, however, does not corroborate the improvement suggested by the annual data, as economic activity dropped a seasonally adjusted 0.81% over the previous month, which contrasted the 0.41% increase recorded in January. Nevertheless, annual average growth in economic activity edged up from 3.9% in January to 4.1% in February. In its latest inflation report from February, the Central Bank projects the economy to expand between 3.0% and 4.0% both this year and next.