Mexico: Economic activity shows signs of improvement in August
October 26, 2015
Economic activity in Mexico accelerated in August, which followed a deceleration in July. According to the monthly economic activity indicator (EGAE) elaborated by the National Statistics Institute (INEGI), economic activity increased 2.6% annually in August, which came in above the 2.0% expansion registered in July. The result, which overshot the 2.4% rise the markets had expected, stemmed from surging activity in the agricultural sector and an acceleration in services. Growth in industry in August mirrored that of July.
The trend suggests that growth in economic activity remains stable. Annual average growth in economic activity inched up from 2.4% in July to 2.5% in August.
A month-on-month comparison confirms the improvement suggested by the annual data. Economic activity jumped 0.5% in August over the previous month in seasonally adjusted terms. The print was up from a 0.1% rise tallied July.
Author: Ricardo Aceves, Senior Economist