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Mexico: Activity in manufacturing sector improves in March

April 1, 2015

The seasonally-adjusted manufacturing indicator elaborated by the Mexican Institute of Finance Executives (IMEF) rose from a revised 50.2 in February (previously reported: 51.0) to 51.4 in March. The result, which also overshot the 50.9 the markets had expected, moved the index further above to the 50-threshold that separates expansion from contraction in business activity in the manufacturing sector.

March’s increase showed that new orders and employment levels improved over the previous month. Conversely, production levels moderated in March, while supplier deliveries were unchanged over the previous month. Meanwhile, inventories increased to the highest level in seven months. Meanwhile, business activity in the manufacturing sector in the United States moderated in March, with the ISM manufacturing index falling from 52.9 in February to 51.5, which marked the lowest level in 22 months.

More in line with the U.S. manufacturing sector, another gauge that measures business activity in Mexico’s manufacturing sector also showed a slowdown in March. The Purchasing Managers’ Index (PMI) elaborated by HSBC fell from 54.4 in February to 53.8 in March, which marked the lowest level in five months. March’s drop reflected slower growth in new business, which had an impact on manufacturing output. According to HSBC, “Mexican manufacturing growth eased further from the peaks seen at the turn of the year, but the latest survey still points to a solid performance.”

LatinFocus Consensus Forecast panelists expect Mexican industrial production to increase 3.6% in 2015, which is unchanged over the previous month’s projection. LatinFocus panelists see industrial production expanding 3.9% in 2016.


Author:, Senior Economist

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Mexico PMI March 2015

Note: Composite index in the manufacturing report on business (PMI) for the U.S. and seasonally-adjusted manufacturing index for Mexico. HSBC Manufacturing PMI. Readings above 50 points indicate an expansion in the manufacturing sector while readings below 50 points indicate to a contraction.
Source: Institute for Supply Management (ISM), Mexican Institute of Financial Executives (IMEF, Instituto Mexicano de Ejecutivos de Finanzas) and HSBC.


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