Mexico: Economic activity rebounds in May as effects of the Japanese disaster wane
July 27, 2011
In May, economy activity expanded 4.5% over the same month last year, according to the monthly IGAE (Indicador Global de la Actividad Economica). The print came in above the 2.3% increase observed in April and overshot market expectations that had economic activity rising 4.0%. Despite the strong reading, annual average growth moderated from 5.1% in April to 4.8% in May. The acceleration was broad-based, as all major categories improved over the previous month. In particular, industrial output recovered to a 4.6% expansion, up from the 1.8% increase seen in April, as the negative effects of the Japanese disaster waned. Moreover, the services sector grew a strong 4.6% (April: +2.7% year-on-year), while agriculture swung from a 1.1% contraction to a 0.6% increase. A month-on-month comparison corroborates the vigorous rebound suggested by the annual figures, as economic activity grew a seasonally adjusted 0.97% over the previous month (April: +0.27% month-on-month).