Mexico: Economic activity decelerates in August
October 24, 2012
In August, economic activity increased 3.5% over the same month last year, according to the IGAE (Indicador Global de la Actividad Economica). The figure came in below the 4.7% expansion recorded in July and undershot market expectations, which had growth slowing down to 3.7%. The moderation was broad-based, with growth in all three main categories - agriculture, industry and services - slowing over July. In particular, the industrial sector decelerated from a 5.0% expansion in July to a 3.6% increase in August. Compared to the previous month, economic activity decreased a seasonally adjusted 0.41% in August, which contrasted the revised 0.62% expansion seen in July (previously reported: +0.66% month-on-month). Furthermore, as a result of the subdued annual reading, the trend is now pointing downwards, with annual average growth in economic activity edging down from 4.4% in July to 4.3% in August.