Mexico | The slow dynamism of manufacturing continues

Summary

The BBVA Multidimensional Manufacturing Indicator fell (-)1.2% YoY in March (the third consecutive drop so far this year), confirming the prolonged slowdown of the sector, given the gradual slowdown in external demand for durable goods.

Key points

• Key points:
• In March, US retail sales recorded a modest growth of 0.3% MaM (real), with declines of (-)1.1% in the automobile and appliance segments, respectively.
• According to INEGI figures, in February the manufacturing subsectors that recorded the largest drops in production were clothing (-3.6% MaM), textile products (-3.5%), and petroleum products (-3.2%).
• In terms of capacity utilization, ten of the twenty-one subsectors are still at levels below their pre-COVID figure (vs. eight the previous month).
• Going forward we anticipate slow dynamism in the sector, in an context of lower external demand for durable goods, amid high interest rates and tighter financing conditions.

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