Mexico: Manufacturing PMIs climb but remain in contractionary territory in July
August 1, 2019
Operating conditions in the manufacturing sector continued to deteriorate in July, albeit to a lesser extent than in June. The seasonally-adjusted manufacturing Purchasing Managers’ Index (PMI) produced by the Mexican Institute of Financial Executives (IMEF) rose from 48.7 points in June to 49.6 points in July. Despite the upturn, the index remained below the 50.0-point threshold, signaling a contraction in the manufacturing sector. Notably, production rose, returning to expansionary territory and largely driving the indicator’s climb in the month.
Similarly, the manufacturing PMI produced by IHS Markit increased to 49.8 in July from 49.2 in June, which had marked the lowest reading in the survey’s history. The index landed marginally below the 50.0-point threshold, indicating a contraction in manufacturing activity. A softer fall in sales and export orders compared to June was mainly behind the overall upturn.
Author: Javier Colato, Economist