Mexico: Manufacturing sentiment rebounds in October
November 1, 2012
In October, the seasonally-adjusted IMEF manufacturing index rose to 51.8 points from a revised 51.0 points in September (previously reported: 51.2 points). The reading marked the first improvement after three consecutive months of declining values and drove the index further above the 50-point threshold that indicates that the manufacturing sector continues to expand. According to IMEF, the October figure "suggests that, while growth in the manufacturing sector has moderated, there are no signs that the deceleration is deeper". Two out of the five sub-categories that compose the index were responsible for the improvement, as an increase for inventories and supplier deliveries more than offset slight declines in new orders, production level and employment. The IMEF manufacturing index is closely related to manufacturing exports. In that vein, positive news are coming from the United States, where the ISM manufacturing index rose 0.2 points to 51.7 points in October. The figure beat market expectations, which had the index unchanged at 51.5 points, and represents the second consecutive month in which the manufacturing sector is expanding, after the index dipped below the 50-point threshold in the June-August period.