Mexico: Manufacturing PMI records worst reading since January in August; non-manufacturing PMI dips
The Mexican Institute of Financial Executives (IMEF) Manufacturing Purchasing Managers’ Index (PMI) came in at 49.4 in August, down from July’s 51.2. August’s result marked the worst reading since January. As such, the index dropped below the 50.0 no-change threshold, signaling a deterioration in manufacturing business conditions from the previous month.
The headline print reflected a sharper deterioration in output and a decline in new orders. Meanwhile, purchasing activity growth softened, while job creation deteriorated. Meanwhile, the non-Manufacturing PMI clocked in at 51.9 in August, down from July’s 52.0, due to weaker growth in new orders and output.
Taken together, PMI figures for July and August suggest a loss of momentum compared to Q2, which is in line with our panelists’ GDP forecasts: The Consensus is for slower quarter-on-quarter growth in economic activity in Q3 compared to Q2.