Mexico: Manufacturing hits the brakes in November
December 3, 2018
Mexico’s manufacturing sector hit the brakes in November. On the one hand, the seasonally-adjusted manufacturing indicator produced by the Mexican Institute of Financial Executives (IMEF) fell from October’s 50.1 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 October. The manufacturing PMI came in at 49.7 points in November (October: 50.7 points), below the 50-point threshold that separates expansion from contraction in the manufacturing sector. New orders stagnated as demand waned, driving a contraction in output. Regardless, firms remained optimistic in the month.
Author: Christopher Thomas, Economist