MexECON Blog

November PMI Falls to 52.3

In a Friday report, Mexico's November purchasing managers index (PMI) for manufacturing fell to a seasonally-adjusted 52.3, compared with revised readings of 52.9 in October and 53.2 in September.  The index is now at its lowest level since August.  According to the report, from Banco de México and the national statistics agency INEGI, the decline in November came mostly from a drop in the subindex on new manufacturing orders.  That index fell to a three-month low of 54.5, versus 55.4 in October.  The subindex on inventories fell sharply to 52.0 from 53.2 in October, though that subindex has only a small weight.  The subindex on factory employment fell modestly to 51.0, while the subindex on supplier deliveries edged down to 49.5.  Meanwhile, the subindex on production was unchanged at 53.8.

Comment:  The PMI is designed so that readings over 50 point to expanding activity, so the November index indicates the Mexican manufacturing sector is still growing broadly.  Nevertheless, the sector is growing somewhat less robustly than it did in the earlier stages of the current economic recovery, and with some key developed economies slowing, downside risks are accumulating. 

Patrick Fearon, CFA
Vice President, Fund Management

PMI 1111

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