Mexico: Trade deficit signals improved manufacturing-sector exports in January
February 27, 2019
Merchandise trade recorded a USD 4.8 billion deficit in January, up from the USD 4.4 billion shortfall registered in the same month a year ago but in line with analysts’ expectations. Moreover, the result contrasted the USD 1.8 billion surplus recorded in December 2018.
Export growth on an annual basis climbed to 5.7% from 4.3% in December, helped along by a nearly broad-based improvement in non-oil and gas exports—and especially stronger manufacturing gains. For its part, automotive-sector export growth was stable from a month earlier. Imports, meanwhile, rose 6.1% on the heels of December’s 0.8% fall. Intermediate-good imports—typically, a bellwether for manufacturing output—jumped from a month earlier.
As such, the 12-month trailing trade deficit widened to USD 14.1 billion from USD 13.7 billion in December.
Author: Christopher Thomas, Economist