Mexico: Economic activity slows in July
September 25, 2020
The monthly indicator for economic activity (IGAE) rose 5.7% in month-on-month, seasonally-adjusted terms in July, below June’s 8.8% expansion which had marked the strongest increase on record.
July’s climb reflected continued recovering activity as Covid-19 containment measures started to be lifted in May. The moderation was driven by slowing activity in both the industrial and services sectors. Primary-sector output, on the other hand, rebounded vigorously from the prior month.
On an annual basis, economic activity declined 9.8% in July (June: -13.3% yoy). Meanwhile, the trend continued to deteriorate, with the annual average variation of economic activity coming in at minus 6.0% in July, down from minus 5.2% in June.
Author: Javier Colato, Economist