Mexico: Conflicting reports from the manufacturing sector in January
In line with a modest recovery, the manufacturing sector appeared to stagnate at the outset of the year. On the one hand, the seasonally-adjusted manufacturing Purchasing Managers’ Index (PMI) produced by the Mexican Institute of Financial Executives (IMEF) rose from December’s 49.1 points to 49.8 points. As such, the indicator remained below the 50-point threshold and signaled contraction of the manufacturing sector. According to the IMEF, a rise in new orders helped offset output and employment losses.
On the other hand, the manufacturing PMI produced by IHS Markit cleared the 50-point threshold in January. It came in at 50.9 points (December: 49.7 points) on an upturn in new orders. Whereas IHS Markit also reported output losses, it saw employment rise—which made a dent into firms’ backlogs. According to the report, firms were negatively impacted by the gasoline crisis and fuel shortages weighed heavily on sentiment.