Mexico: Manufacturing PMI improves in August; non-manufacturing PMI stable
The Mexican Institute of Financial Executives (IMEF) Manufacturing Purchasing Managers’ Index (PMI) came in at 52.3 in August, up from July’s 51.3. August’s result marked the strongest reading since April 2022. Consequently, the index moved further above the 50.0 no-change threshold, signaling a faster improvement in manufacturing sector operating conditions compared to the previous month. Faster expansions in new orders and employment underpinned the reading. Meanwhile, the non-Manufacturing PMI clocked in at 52.1 in August, unchanged from July.
Taken together, PMI data for July–August suggests that Mexico’s economy continues to expand in Q3. Strong remittances and tourism are likely supporting services, while the manufacturing sector is performing particularly well by international standards; the JPM Global Manufacturing PMI stood at 49.0 in August. This is likely thanks to strong merchandise export demand from the still-robust U.S. economy, and nearshoring activity as some firms move manufacturing activity from Asia to Mexico in order to secure access to the U.S. market.