Mexico: Economic activity rebounds in July on strong agricultural sector
September 28, 2011
In July, economic activity increased 3.7% over the same month last year, according to the monthly IGAE (Indicador Global de la Actividad Economica). The reading came in slightly above both the 3.5% growth observed in June and market expectations that had economic activity rising 3.6%. The improvement was mainly driven by a rebound in the volatile agricultural sector, which swung from a 3.3% contraction in June to a 7.0% expansion in July. Services also picked up from 3.7% growth in June to add 4.0% in July. In contrast, growth in the industrial sector moderated for the second month in a row, falling from 3.7% in June to 3.2% in July. A month-on-month comparison confirms the rebound suggested by the annual figures, as economic activity grew a seasonally adjusted 0.88% over the previous month (June: -0.19% month-on-month). Despite the strong reading, annual average growth inched down from 4.5 % in June to 4.4% in July.