Mexico: Business confidence softens but remains in positive territory
October 3, 2011
The manufacturing sector continues to expand but is showing signs of moderating the pace. In September, the producer confidence indicator (ICP, Indicador de Confianza del Productor) dropped to 53.7 points. The drop represents the third consecutive decline in business sentiment and the lowest level in 18 months. Moreover, in seasonally adjusted terms the index fell 3.7% over the previous month. That said, despite the drop, the ICP remains above the 50-point threshold, indicating that managers in the manufacturing sector remain optimistic. The purchasing managers' index (IPM, Indicador de Pedidos Manufactureros) followed suit and fell from 54.3 points in August to 52.7 points, which sees the index above the 50-point threshold and points to expansion in the manufacturing sector. In addition, in seasonally adjusted terms the index grew 1.87%, which contrasted the severe 4.10% decline in the previous month.