Mexico: Manufacturing PMIs remain in contractionary territory at end-2019
January 2, 2020
The seasonally-adjusted manufacturing Purchasing Managers’ Index (PMI) produced by the Mexican Institute of Financial Executives (IMEF) inched up to 46.8 in December from 46.6 in November, signaling a slightly softer contraction in the manufacturing sector compared to November. Notably, both production and new orders fell at milder rates in December, largely driving the indicator’s uptick. Employment, however, contracted more sharply than in the previous month.
In contrast, the seasonally-adjusted manufacturing PMI produced by IHS Markit declined from 48.0 in November to 47.1 in December, the worst result since the survey began in April 2011. Thus, the index fell further below the 50-threhold, indicating a sharper deterioration in business conditions in the manufacturing sector. December’s fall largely reflected a drop in output, new orders and business confidence, which were the steepest on record. Firms also reduced their staffing levels, albeit less so than in the previous month.
Author: Javier Colato, Economist