Mexico: Sentiment remains optimistic despite a slightly moderation in March
April 4, 2011
In March, the producer confidence indicator (ICP, Indicador de Confianza del Productor) dropped to 51.3 points from 52.1 points in February. A seasonally adjusted analysis corroborates the notion of a slight moderation, as the index dropped 1.55% over the previous month, mainly driven by dwindling prospects for the overall economy and a less positive sentiment amongst businesses regarding their present situation compared to a year ago. That said, the index remains above 50 points, suggesting that mangers in the manufacturing sector remain optimistic. The purchasing manager's index (IPM, Indicador de Pedidos Manufactureros) broadly mirrored the movements observed in the ICP, dropping a seasonally adjusted 1.48% over the previous month. The moderation was influenced by a less upbeat assessment of future orders and a reduction of inventories. Nevertheless, the IPM remains at 53.3 points, which is still above the 50-point threshold that separates optimism from pessimism.