Mexico: Growth moderates further in Q3
November 16, 2012
In the third quarter, GDP grew 3.3% over the same period last year. The reading represents a further moderation over the 4.4% expansion recorded in the second quarter, marking the lowest pace seen in five quarters, and undershooting last month's LatinFocus Consensus Forecast panellist expectations of a 3.5% increase. The deceleration was broad-based, with all three main sectors - agriculture, industry and services - moderating the pace of growth. In particular, the services sector slowed to a 3.3% increase in Q3 (Q2: +4.6% year-on-year), with commerce growing at its slowest pace since the final quarter of 2009. Moreover, the industrial sector rose 3.6% in the third quarter (Q2: +4.1% yoy), while agricultural output decelerated markedly by growing a mere 1.7% (Q2: +11.1% yoy). A quarter-on-quarter comparison corroborates the slowdown suggested by the annual data, as in the third quarter the economy increased a seasonally adjusted 0.5%. The figure came in below the 0.8% expansion recorded in the previous three-month period, thereby marking the slowest pace of expansion in six quarters.