Mexico | Manufacturing weakness extends into November

Summary

The BBVA Research Multidimensional Manufacturing Indicator fell (-)3.6% YoY in November, the eighth consecutive decline since April

Key points

• Key points:
• The most recent figures on industrial activity in the US point to a prolonged stagnation of manufacturing production in that country, given the slow dynamism of the sector following the hurricane season and the strike at Boeing.
• According to INEGI figures, manufacturing registered an accumulated growth of 0.4% as of October (YoY), with fourteen of the twenty-one subsectors reporting production levels below those recorded in January (vs. eight the previous month).
• Regarding the levels of capacity utilization, as of October eight of the twenty-one subsectors were still below their pre-COVID figure; among them, the garment industry stands out (down 20.5% from its Jan-20 figure), the wood industry (-12.6%), and the chemical industry (-11.0%).
• While we estimate that the negative effects derived from the impact of hurricanes and the strike in the aeronautics sector will fade in the coming months, there are risks for manufacturing associated with potential changes in US trade policy in 2025.

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