Mexico: Economic activity moderates the pace of expansion
March 29, 2016
Mexico’s economic activity, measured by the monthly economic activity indicator (EGAE) elaborated by the National Statistics Institute (INEGI), increased 2.3% year-on-year in January. January’s reading marked a deceleration compared to the 2.6% expansion registered in December and fell short of the 2.5% increase the markets had expected. According to INEGI, the monthly deceleration was mainly the result of slower growth in services. That said, the agricultural and industrial sectors picked up steam and expanded notably in January.
On a sequential basis, economic activity expanded a seasonally-adjusted 0.6% over the previous month in January, which came in well above the 0.1% rise seen in December. The increase in January was the fastest since August 2015.
The trend continued to suggest that growth in economic activity remains stable, albeit solid. Annual average growth in economic activity remained steady in January at December’s 2.5%.
Author: Ricardo Aceves, Senior Economist