Mexico: Economic activity softens slightly in June
August 22, 2017
The monthly proxy GDP (IGAE) produced by National Statistics Institute (INEGI) expanded 2.4% in annual terms in June. This figure was somewhat below the 3.1% expansion recorded in the previous month, but came in slightly above expectations of a 2.3% increase through the month.
The main driver of growth was the services sector (June: +3.9% year-on-year; May: +4.4% yoy), which now has expanded without interruption for 14 months in a row. The slightly slower pace of growth resulted from a softer expansion in retail and transport activity, which nonetheless remained strong. Conversely, growth in the industrial sector swung back into contractionary territory with a 0.3% decrease after having expanded 1.0% in May. The sector’s performance reflected weaker growth in manufacturing activity and unrelenting woes in the oil industry. On a better note, the agricultural sector expanded 2.0% in June, which contrasted the 0.2% decrease recorded in the previous month.
On a monthly basis, economic activity increased 0.5% in seasonally-adjusted terms in June, an acceleration from May’s 0.2% month-on-month increase.
Author: David Ampudia, Economist