Mexico: Manufacturing PMI rises to over two-year high in December; Services PMI picks up
January 3, 2022
The Mexican Institute of Financial Executives (IMEF) Manufacturing Purchasing Managers’ Index (PMI) rose to 52.6 in December from November's 50.8. December's result marked the strongest reading since April 2019. As such, the index moved further above the 50-threshold, signaling a faster improvement in business conditions compared to the previous month.
The reading was driven by stronger growth in employment and inventory purchases, while growth in new orders and output ebbed. Meanwhile, the non-Manufacturing PMI rose from 50.4 to 52.6, due to faster growth in new orders, output and employment. Taken together, the PMI readings over Q4 as a whole suggest a slight strengthening of economic activity relative to Q3, aided by a marked reduction in Covid-19 cases and an uptick in vehicle production.
Author: Oliver Reynolds, Economist