Mexico: Business confidence moderates amid weaker expectations
December 2, 2010
In November, the producer confidence indicator (ICP, Indicador de Confianza del Productor) fell to 51.2 points from 51.5 points in October. The drop was led by a less optimistic assessment of companies regarding investments. In the same vein, respondents were less upbeat about the outlook for the overall economy and for their own activity over the next twelve months. That said, all sub-components of the ICP remain above the 50-point threshold that separates optimism from pessimism. Meanwhile, the purchasing manager's index (IPM, Indicador de Pedidos Manufactureros), which measures the purchasing manager's expectations for the coming month, confirmed the recovery currently taking place in the manufacturing sector. In November, the seasonally adjusted IPM rose to 52.3 points from 51.5 points in October. The improvement was driven by a higher volume of expected orders as well as by a projected increase in output. A reading above 50 point indicates that the manufacturing sector is expanding.