Mexico: Manufacturing PMIs rise in October but remain weak
The seasonally-adjusted manufacturing Purchasing Managers’ Index (PMI) produced by the Mexican Institute of Financial Executives (IMEF) jumped from 46.9 in September to 50.1 in October—the highest reading since May 2019. Thus, it landed above the critical 50-point threshold, indicating a marginal expansion of the manufacturing sector, following 16 consecutive months of contraction. October’s increase was primarily driven by a return to growth in new orders, production and employment.
In a similar fashion, the seasonally-adjusted manufacturing PMI produced by IHS Markit continued to climb from its all-time low in April, coming in at 43.6 in October (September: 42.1)—a seven-month high. That said, it remained well below the 50-threshold, pointing to another sharp deterioration of business conditions in the manufacturing industry as the pandemic continued to bite. October’s increase reflected softer contractions in output, new orders and employment. Notably, businesses turned pessimistic again in October after signaling optimism in September, owing to downbeat expectations over factory output ahead.