Mexico: Manufacturing PMIs bounce back at the turn of 2020
February 5, 2020
The seasonally-adjusted manufacturing Purchasing Managers’ Index (PMI) produced by the Mexican Institute of Financial Executives (IMEF) climbed from 47.0 in December to 48.2 at the start of 2020, signaling a softer contraction in the manufacturing sector. Notably, production, new orders and employment declined at milder rates in January compared to the previous month, driving the indicator’s upturn.
Similarly, the seasonally-adjusted manufacturing PMI produced by IHS Markit jumped to 49.0 in January from 47.1 in December, which had marked the worst reading since the survey began in April 2011. Thus, the index moved up towards the 50-threhold, indicating a weaker deterioration in business conditions in the manufacturing sector. January’s rise largely reflected a return to growth in employment and business confidence reaching an eight-month high. Moreover, although output and new orders fell, their pace of decline moderated compared to December.
Author: Javier Colato, Economist