Mexico: Economic activity expands at a healthy pace in July
September 25, 2012
In July, economic activity expanded 4.7% over the same month last year, according to the IGAE (Indicador Global de la Actividad Economica). The reading surprised the market on the upside, as analysts expected a milder 4.3% increase. The acceleration reflected stronger growth in both services and industry, while agricultural output, which has little weight in the overall economy, decelerated markedly. On a monthly basis, economic activity expanded a seasonally adjusted 0.66% in July, which was below the 0.85% expansion witnessed in June. As a result of the stronger annual reading, the trend picked up in July, with annual average growth in economic activity edging up to 4.4% (June: +4.3% year-on-year). In its latest inflation report from August, the Central Bank expects GDP to grow between 3.25% and 4.25%.