Mexico: Economic activity rebounds in May
July 24, 2017
The monthly proxy GDP (IGAE) produced by INEGI swung from a revised 0.6% contraction in April (previously reported: -0.7% year-on-year) to a 3.1% expansion in May. May’s figure was above market expectations of a 2.6% expansion.
The main driver of growth was the services sector (May: +4.4% yoy; April: +1.4% yoy). The largest increase was recorded in the temporary accommodation and food and beverage preparation services subcomponent. The commerce subcomponent rebounded strongly. Concurrently, the secondary sector swung back into positive territory with a 1.0% increase after taking a hit in April with a 4.2% decline. The primary sector experienced its first contraction since May 2016 (May 2017: +0.3% yoy) following last month’s rise of 0.5%.
On a monthly basis, economic activity increased 0.2% in seasonally-adjusted terms in May, a slight acceleration from April’s 0.1% month-on-month increase.
Author: Lindsey Ice, Economist