Mexico: Economic activity moderates in September
September 26, 2016
September’s monthly proxy GDP (IGAE) produced by INEGI decelerated from a 3.0% year-on-year increase in August to a 1.6% expansion in September. Nonetheless, the moderation was less disappointing than the 1.4% rise the markets had expected. The expansion was supported by a 3.2% annual expansion in services and by a 4.6% rise in agriculture, which were dragged down by a sudden contraction in the industrial sector.
Sequential data showed that economic activity expanded 0.5% from the previous month in seasonally-adjusted terms, which came in above the flat growth rate observed in August.
All in all, September’s result suggests that GDP ended Q3 on a weak footing and that the overall trend in economic activity is starting to moderate. Annual average growth in economic activity fell from 2.4% in August to 2.2% in September.
Author: Ricardo Aceves, Senior Economist