Mexico: Business confidence remains positive for fifth month in a row
November 4, 2010
In October, the producer confidence indicator (ICP, Indicador de Confianza del Productor), which measures the preferences for investment as well as the assessment of the current and future state of companies and of the economy, rose from 50.6 points in September to 51.3 points. As a result, the index remained above the 50-point threshold that separates optimism from pessimism for the fifth consecutive month. The higher reading mostly reflected the companies' better assessment of the current investment climate. Moreover, respondents were also more optimistic regarding the outlook for the overall economy in the next twelve months. In the same vein, the purchasing managers index (IPM, Indicador de Pedidos Manufactureros), which measures the purchasing managers' assessment of both the current and future state of the manufacturing sector, rose from 50.5 points in September to 52.2 points. A reading above 50 point indicates that the manufacturing sector is expanding. The improvement was broad-based, as four out of the five sub-components of the index rose over the previous month. That said, the rise was mostly driven by businesses expecting output to increase over the previous month as well as by higher levels of employment.