MexECON Blog

March Industrial Output Rises 7.6 Percent YOY

Mexico's March industrial production was up 7.6% from the same month one year earlier, according to a new report from the national statistics agency.  That marked the fourth straight month of year-over-year increases, following revised gains of 5.0% in February, 3.6% in January, and 1.6% in December.  Before those increases, Mexican industrial output had fallen on a year-over-year basis for 19 straight months.  The rise in March stemmed mostly from a 13.1% jump in output in the manufacturing sector, where 19 of the 21 subsectors posted year-over-year increases.  March mining output was up 4.1% year-over-year.  Within this category, petroleum production was down 1.2%, but non-petroleum production was up 27.6%.  March utility production was up 1.1% year-over-year, while construction output was down 1.8%.

Comment:  On a monthly, seasonally-adjusted basis, Mexico's industrial output has risen or been stable for seven straight months.  The recovery illustrates how inventory rebuilding and some increases in corporate and consumer demand in the United States are having a strong positive impact on Mexico.  If the U.S. economy continues its recovery, the Mexican economy should continue to grow, and that is likely to keep providing support for the peso and Mexican asset prices.

Patrick Fearon, CFA
Vice President, Fund Management

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