Mexico: Economic activity increases at the slowest pace in nine months
July 24, 2015
In May, economic activity in Mexico, which is measured by INEGI’s monthly economic activity indicator (IGAE), increased 1.5% over the same month last year. The print came in below April’s 2.1% expansion, but was better than the 1.2% rise the markets had expected. According to INEGI, the industrial sector was the main drag for growth in May. Growth in industry deteriorated and contracted 0.9% annually in May, which marked the first decrease in 18 months. Cushioning industry’s drop was a notable expansion in services. The agricultural sector also contributed to growth in May
As a result of the slowdown, the overall trend stabilized. The annual average growth in economic activity remained unchanged in May at April’s 2.4%.
Sequential data confirm the slowdown suggested by the annual data. Economic activity increased a timid 0.05% in May over the previous month, which came in below the revised 0.68% expansion tallied in April (previously reported: +0.72% month-on-month).
Author: Ricardo Aceves, Senior Economist