Mexico: Manufacturing and non-Manufacturing PMIs ease in August
September 1, 2021
The Mexican Institute of Financial Executives (IMEF) Manufacturing Purchasing Managers’ Index (PMI) fell to 51.3 in August from July's 51.9. Consequently, the index remained above the 50-threshold, but pointed to a moderating improvement in business conditions from the previous month. This was a result of slower new orders growth and a slight downturn in employment. In contrast, production and inventories rose at a faster pace.
Meanwhile, the non-Manufacturing PMI declined from 52.3 to 50.1, due to softer signs relating to production, new orders and employment. Taken together, the PMI readings suggest weaker economic momentum midway through Q2, likely influenced by supply constraints and surging Covid-19 cases at home and in key overseas markets such as the U.S.
Author: Oliver Reynolds, Economist