Mexico: Manufacturing PMIs plummet due to Covid-19 disruption
The seasonally-adjusted manufacturing Purchasing Managers’ Index (PMI) produced by the Mexican Institute of Financial Executives (IMEF) fell deeper in the red to 40.5 in April from 44.2 in March. The result marked the lowest reading since at least January 2005 and signaled a sharper contraction of the manufacturing sector. A plunge in production, combined with marked declines in new orders and employment, drove the indicator’s downturn.
Similarly, the seasonally-adjusted manufacturing PMI produced by IHS Markit plummeted from 47.9 in March to 35.0 in April, the lowest reading since data collection began over nine years ago. Thus, the index pointed to a further deterioration of business conditions in the manufacturing sector. April’s crash was driven by the collapse in demand and factory closures prompted by the Covid-19 pandemic, with production, new orders and employment suffering historic contractions.