Mexico: Economic activity accelerates in August but trend continues to point down
October 27, 2011
In August, economic activity increased 4.4% over the same month last year, according to the IGAE (Indicador Global de la Actividad Economica). The figure exceeded both the 3.7% expansion observed in July and market expectations, which had economic activity maintaining the pace at 3.7%. As in the last month, the improvement was underpinned by the agricultural sector, which stepped up from a 7.0% increase in July to a buoyant 14.8% expansion in August. Moreover, growth in the services sector picked up from 4.0% in July to 4.6% in August, while growth in the industrial sector was unchanged over the previous month at 3.1%. A month-on-month comparison, however, does not confirm the improvement suggested by the annual figures, as economic activity declined a seasonally adjusted 0.42% over the previous month (July: +0.76% month-on-month). Moreover, despite the relatively strong monthly print, the trend continues to point down, with annual average growth in economic activity falling from 4.4% in July to 4.2% in August.