Mexico: PMI and business confidence moderate in December
January 7, 2011
In December, the producer confidence indicator (ICP, Indicador de Confianza del Productor) fell to 50.8 points from 51.1 points in November. The small monthly drop reflected a weaker assessment of the present economic situation for both the respondents' own companies and the overall economy. Nevertheless, the index remains above the 50-point threshold that separates optimism form pessimism, and respondents were even more optimistic regarding the outlook for the next 12 months for their own companies and for the economy as a whole. The purchasing manager's index (IPM, Indicador de Pedidos Manufactureros), which measures the evolution of the manufacturing sector during the previous month, showed a slight weakening in the manufacturing sector. In seasonally adjusted terms, the IPM dropped 0.2% over November, driven entirely by a fall in raw material inventories. Meanwhile, the unadjusted index fell to 49.1 points. A reading below 50 point indicates that the manufacturing sector is contracting.