Mexico: Manufacturing and non-manufacturing PMI readings stay weak in July
Latest reading: The Mexican Institute of Financial Executives (IMEF) Manufacturing Purchasing Managers’ Index (PMI) rose from 47.9 in June to 49.4 in July. Nevertheless, the index remained below the 50.0 no-change threshold for a twenty-eighth consecutive month, indicating that manufacturing-sector operating conditions continued to deteriorate, albeit at a slower pace. New orders improved slightly but remained in contractionary territory, while output rose above the expansion threshold to 50.3. The employment component also improved but stayed below 50.0, pointing to continued weakness in manufacturing labor conditions. Delivery times increased but remained in contractionary territory, while inventories rose further and remained above the expansion threshold.
Meanwhile, the non-manufacturing PMI increased from 49.2 in June to 49.9 in July, moving close to the expansion threshold but continuing to signal weakness in services and commerce. Readings for new orders, output, and employment all improved, although each component remained below 50.0.