Mexico | Manufacturing moderates its growth in December

The BBVA Multidimensional Manufacturing Indicator (BBVA MMI) grew 0.1% YoY in December, bringing the average interannual variation in 2023 to 1.2% (vs. 6.3% the previous year)

Key points

• Key points:
• The muted growth of the sector during the last month of the year points towards a gradual slowdown in manufacturing production, given the deceleration in external demand for durable goods.
• The most recent manufacturing data in the US (December) report a drop or null growth in all sectors, except automobiles and furniture, which already points towards a downward adjustment in production levels in a context of gradual slowdown in the domestic consumption of that country.
• The petroleum products segment showed the largest growth in capacity utilization during November (from 46.2% to 59.0%), while the printing industry showed the largest decline (from 79.5% to 72.5%).
• We anticipate the lower growth in external demand will continue going forward, given the extended period of high interest rates and the reduction in accumulated savings in the U.S.

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