Mexico PMI

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Mexico: Manufacturing sentiment falls to lowest level in seven months in April

May 2, 2013

Confidence in the manufacturing sector continues to weaken. In April, the seasonally-adjusted IMEF manufacturing index dropped to 50.7 points from a revised 51.3 points in March (previously reported: 52.2 points). The reading, which represents the lowest level seen in seven months, came in broadly in line with market expectations. Despite the decline, the manufacturing sector continues to grow as readings above 50 points indicate an expansion.

Three out of the five sub-categories that compose the index moderated over March, most notably production and new orders. In contrast, employment and supplier deliveries improved slightly over the previous month.

Meanwhile, in the United States, the ISM manufacturing index mirrored the developments seen in Mexico and dropped also from 51.3 points in March to 50.7 points in April. Given the significant cross-border integration of the manufacturing sector, a deceleration in manufacturing activity in the U.S. points to softer growth in its Mexican counterpart going forward.

LatinFocus Consensus Forecast panellists anticipate Mexican industrial production to increase 3.3% this year, which is down 0.2 percentage points over the previous month's projection. For next year, panellists see industrial production expanding 4.0%.
Confidence in the manufacturing sector continues to weaken. In April, the seasonally-adjusted IMEF manufacturing index dropped to 50.7 points from a revised 51.3 points in March (previously reported: 52.2 points). The reading, which represents the lowest level seen in seven months, came in broadly in line with market expectations. Despite the decline, the manufacturing sector continues to grow as readings above 50 points indicate an expansion.

Three out of the five sub-categories that compose the index moderated over March, most notably production and new orders. In contrast, employment and supplier deliveries improved slightly over the previous month.

Meanwhile, in the United States, the ISM manufacturing index mirrored the developments seen in Mexico and dropped also from 51.3 points in March to 50.7 points in April. Given the significant cross-border integration of the manufacturing sector, a deceleration in manufacturing activity in the U.S. points to softer growth in its Mexican counterpart going forward.

LatinFocus Consensus Forecast panellists anticipate Mexican industrial production to increase 3.3% this year, which is down 0.2 percentage points over the previous month's projection. For next year, panellists see industrial production expanding 4.0%.


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Mexico PMI April 2013

Note: Composite index in the manufacturing report on business (PMI) for the U.S. and seasonally-adjusted manufacturing index for Mexico. Readings above 50 points indicate an expansion in the manufacturing sector while readings below 50 points indicate to a contraction.
Source: Institute for Supply Management (ISM) and Mexican Institute of Financial Executives (IMEF, Instituto Mexicano de Ejecutivos de Finanzas).


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