Mexico: Manufacturing PMIs climb in June but remain well entrenched in contractionary terrain
July 1, 2020
The seasonally-adjusted manufacturing Purchasing Managers’ Index (PMI) produced by the Mexican Institute of Financial Executives (IMEF) clawed back up to 42.0 in June from 37.6 in May, which had marked the lowest reading on record. Despite the increase, the print signaled that the manufacturing sector continued to contract at a marked pace. Softer declines in both production and new orders drove the indicator’s climb.
Similarly, the seasonally-adjusted manufacturing PMI produced by IHS Markit inched up from 38.3 in May to 38.6 in June. As a result, it remained well below the 50-threshold, pointing to a further stark deterioration of business conditions in the manufacturing industry. June’s uptick was largely driven by a softer fall in new export orders and less pessimism among manufacturers. That said, demand conditions remained bleak as Covid-19 continues to take its toll.
Author: Javier Colato, Economist