Mexico: Economic activity weakens slightly
December 23, 2014
The monthly economic activity indicator (IGAE) elaborated by INEGI increased 2.5% in October over the same month of the previous year. The print came in below the 3.0% expansion tallied in September, but overshot the 2.4% increase the market had expected. Economic activity’s trend has stabilized; annual average growth was 1.8% in October, which matched the reading observed in September.
October’s result stemmed from a deceleration in the industrial sector (October: +2.1% year-on-year, September: +2.9% yoy) and a sizable contraction in agriculture (October: -1.9% year-on-year, September: +7.0% yoy). Services increased 3.0% annually in October, which matched the reading observed in September.
On a sequential basis, economic activity expanded a seasonally-adjusted 0.59% over the previous month in October. The reading was above the 0.03% rise observed in September.
Author: Ricardo Aceves, Senior Economist