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Consumer Confidence Drops Sharply

Mexico's July consumer confidence index fell to a seasonally-adjusted 91.2, and the readings for each of the previous three months were revised sharply downward.  While a stronger labor market is supporting consumers' optimism regarding the situation for their own family, they are increasingly worried by broader problems facing Mexico as a whole.

Posted by: Patrick FearonCategory:Mexican Economy, Consumer Confidence, Leave Comment

PMI Continues to Rebound

Mexico's July purchasing managers index for the manufacturing sector rose to a seasonally-adjusted 52.7, up from 52.5 in June and a revised 52.4 in May.  The PMI has now risen for three straight months, leaving it at its highest level since January.

Posted by: Patrick FearonCategory:Mexican Economy, Purchasing Managers Index, Leave Comment

Leading Index Finally Stabilizes

Mexico's June index of leading economic indicators was unchanged at 99.8, finally stabilizing after declines in each of the preceding eight months.  The stabilization provides more evidence that the Mexican economy is unlikely to slow too much in the near term.

Posted by: Patrick FearonCategory:Mexican Economy, Leading Economic Indicators, Leave Comment

Peso Review - July 2015

In July, the Mexican peso declined 2.4% against the U.S. dollar, closing the month at a spot-market value of $0.0621 (16.10 pesos per dollar).  The currency has now fallen in 10 of the last 11 months, leaving it down some 20.2% from its most recent high in June 2014.  The peso has set multiple record lows in recent months, and all signs suggest it will continue to weaken.

Posted by: Patrick FearonCategory:Mexican Economy, The Peso, Leave Comment

Central Bank Holds Rates at 3.00 Percent

In a decision on Thursday, policymakers at Banco de México held their benchmark interest rate at a record low of 3.00%, unchanged since the last rate cut in June 2014.  However, the policymakers continue to signal they will raise rates in response to a likely hike in U.S. interest rates in the coming months.

Posted by: Patrick FearonCategory:Mexican Economy, Monetary Policy, Leave Comment

June Exports in Partial Rebound

Mexico's June merchandise trade deficit narrowed to a seasonally-adjusted $1.354 billion, as exports and imports both rebounded partially from their declines in May.  Nevertheless, weak petroleum exports continue to be a drag.  Overall exports in June were up just 1.2% from the same month one year earlier, while imports were up 4.7%.

Posted by: Patrick FearonCategory:Mexican Economy, Trade Balance and Exports, Leave Comment