Mexico: Business confidence falls in January
February 4, 2011
In January, the producer confidence indicator (ICP, Indicador de Confianza del Productor) dropped to 50.3 points from 51.4 points in December. The monthly deterioration was the result of a less optimistic outlook for the next twelve months for both the respondents' own companies and the overall economy. Despite the monthly drop, the forward looking components remain positive and are, in fact, the most upbeat part of the ICP. That said, the overall index now stands just above the 50-point threshold that separates optimism from pessimism. Meanwhile, the purchasing manager's index (IPM, Indicador de Pedidos Manufactureros), which measures the performance of the manufacturing sector in the last month, confirmed that the sector continues to grow. In seasonally adjusted terms, the IPM increased 0.8% in January. However, the improvement was mostly driven mostly by stronger confidence in suppliers providing raw materials while the expected level of production dropped for the first time in four months.