Mexico: Growth in economic activity slips in July
September 24, 2015
Mexico’s economic activity slowed in July, which followed an acceleration in June. According to the monthly economic activity indicator (IGAE) elaborated by INEGI, growth in Mexico’s economy slowed from a 3.2% year-on-year increase in June to a 2.0% expansion in July. The result, which was in line with market expectations, resulted from a deceleration in the industrial sector and in services.
According to INEGI, growth in the industrial sector was nearly half of that in July. It fell from 1.3% year-on-year in June to 0.7%. In addition, services decelerated from a 4.6% increase in June to a 2.8% expansion in July. That said, the agricultural sector registered flat growth in July, which was above the 1.7% contraction tallied in the previous month.
Despite the slowdown, the overall trend was still stable. Annual average growth in economic activity in July remained unchanged at 2.4% for a fourth consecutive month.
Sequential data confirm the slowdown suggested by the annual data. Economic activity increased a timid a seasonally-adjusted 0.07% in July over the previous month, which came in below the revised 0.38% expansion tallied in June.
Author: Ricardo Aceves, Senior Economist