Mexico: PMI indicator stays in positive territory
January 2, 2014
The seasonally-adjusted manufacturing indicator published by the Mexican Institute of Finance Executives (IMEF) inched down from 50.4 points in November to 50.3 points in December. Although the result came in below market expectations of 51.5 points, the index is still just barely above the 50-point threshold that separates expansion from contraction in the manufacturing sector.
December's subdued reading primarily reflected an improvement in employment and supply deliveries, which compensated for the slight decrease in new orders and production levels.
The Mexican manufacturing sector is strongly linked to the manufacturing sector in the United States, where the ISM manufacturing index also declined in December and fell to 57.0 points (November: 57.3 points). Nevertheless, the index remains in expansion territory, which bodes well for the Mexican manufacturing sector in the months ahead.
LatinFocus Consensus Forecast panelists expect Mexican industrial production to increase 3.1% in 2014, which is down 0.3 percentage points over the previous month's projection. Panelists see industrial production expanding 3.7% in 2015.
Author: Ricardo Aceves, Senior Economist