Mexico | Manufacturing slowdown moderates in September

Summary

The BBVA Research Multidimensional Manufacturing Indicator fell (-)2.2% YoY in September, the ninth consecutive decline so far this year, but less than the contraction registered in August

Key points

• Key points:
• Considering the September figure, the year-on-year change averages (-)2.8% for the January-September period of this year, 4.9 pp below the figure recorded in the same period last year.
• The most recent data on economic activity in the U.S. point to resilience in private spending and manufacturing production in that country, confirming that the sector's output in Mexico may have surpassed its lowest point.
• According to INEGI's industrial activity figures, in cumulative terms, manufacturing registered a (-)0.3% drop as of August, compared to the same period last year, with eleven of the twenty-one subsectors reporting production levels below those recorded in January.
• We anticipate that the manufacturing sector will not show further deterioration in the coming months, given the resilience of external demand, in a context of gradual interest rate decreases.

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