Mexico: Economy expands vigorously in November
January 27, 2011
In November, economic activity grew 5.8% over the same month last year, according to the monthly indicator for economic activity (IGAE, Indicador Global de la Actividad Economica). The reading exceeded the 4.2% increase recorded in October and surprised market analysts on the upside, who had been expecting a slower 4.0% expansion. The acceleration over the previous month was broad-based. Agriculture accelerated strongly, rising 14.4% over the previous year, well above the 2.3% expansion recorded in October. Moreover, growth in the industrial sector stepped up to 5.3% (October: +3.5% year-on-year), while growth in the services sector accelerated to 5.0% (October: +4.3% yoy). A month-on-month comparison confirms the notion of stronger growth, as the index grew a seasonally adjusted 0.68% over the previous month (October: +0.49% month-on-month). Moreover, annual average growth in economic activity continues to point upwards, rising from 4.6% in October to 5.3% in November.