Mexico: Confidence in manufacturing sector improves for third consecutive month in September
October 1, 2013
The seasonally-adjusted manufacturing indicator published by Mexican Institute of Finance Executives (IMEF) rose to 49.9 points in September (August: 49.5 points). The result was broadly in line with market expectations. The reading marks the third consecutive month of improvement in the index, which now sits just a whisker below the 50-point threshold separating contraction from expansion in the manufacturing sector.
The fact that the index has been rising since July reflects a notable increase in new orders and production levels, reaching expansions in both territories for the first time since April. In addition, confidence in employment improved over the previous month. Conversely, supplier deliveries edged down in September.
In the United States, the ISM manufacturing index rose from 55.7 points in August to 56.2 points in September. The index now sits at its highest level in nearly 30 months, which bodes well for the Mexican manufacturing sector in the coming months.
LatinFocus Consensus Forecast panelists expect Mexican industrial production to increase 1.7% this year, which is down 0.5 percentage points over the previous month's projection. Panelists see industrial production expanding 3.8% in 2014, which is down 0.3 percentage points from last month's forecast.
Author: Ricardo Aceves, Senior Economist