Mexico: Manufacturing downbeat in October
Mexico’s manufacturing sector tapped the brakes in October. On the one hand, the seasonally-adjusted manufacturing indicator produced by the Mexican Institute of Financial Executives (IMEF) fell from September’s 51.3 points to 49.7 points. As a result, the indicator dipped below the threshold that separates expansion from contraction in the manufacturing sector. According to the IMEF, the deterioration was driven by a fall in output and new orders.
On the other hand, the manufacturing Purchasing Managers’ Index (PMI) produced by IHS Markit landed 1.0 point lower than in September. The manufacturing PMI came in at 50.7 points in October (September: 51.7 points), above the 50-point threshold that separates expansion from contraction in the manufacturing sector. New orders slowed considerably, driving weaker outturns for output and employment. Regardless, firms remained optimistic in the month.