Mexico: Manufacturing sector weakens in March
April 2, 2019
The manufacturing sector appears to have lost steam at the end of Q1. The seasonally-adjusted manufacturing Purchasing Managers’ Index (PMI) produced by the Mexican Institute of Financial Executives (IMEF) dropped from February’s 54.0 points to 50.2 point. Accordingly, the indicator landed only slightly above the 50-point threshold, that signals an expansion of the manufacturing sector.
Similarly, the manufacturing PMI produced by IHS Markit fell in March. The manufacturing PMI dropped from an over one-year high of 52.6 in February to 49.8 in March. As a result, the indicator now points to a slight contraction in business conditions in the sector. According to IHS Markit, the fall was driven by a drop in output and stagnating incoming orders. However, overall the manufacturing PMI still averaged higher in Q1 2019 than the final quarter of last year.