Mexico: Economic activity remains steady in November
January 27, 2012
In November, economic activity rose 3.8% over the same month the previous year, according to the IGAE (Indicador Global de la Actividad Economica). The figure was a notch above both the 3.7% expansion observed in October as well as market expectations that had economic activity increasing 3.6%. The monthly expansion was underpinned by developments in the industry and services sectors, where growth was broadly unchanged from the previous month. In contrast, output in the agricultural sector, having little weight in the index, deteriorated compared to October. On a month-on-month basis, economic activity increased a seasonally adjusted 0.17% over October, which contrasted the 0.63% contraction seen in the previous month. Despite the monthly increase, the trend continued to moderate, with annual average growth in economic activity edging down from 4.2% in October to 4.1% in November. The government expects the economy to have increased 3.7% in the final quarter of 2011, which would result in an average growth rate of 4.0% for the full year 2011.