MexECON Blog

April Industrial Output Falls 0.1 Percent

Mexico's April industrial production fell a seasonally-adjusted 0.1%, after a decline of 0.2% in March and a revised decrease of 0.5% in February.  That marked the first time Mexican industrial output has declined for three straight months since at least 2008.  According to the report, from the official statistics agency INEGI, the decline in April stemmed entirely from falling production in mining and utilities.  The report showed increased output in both construction and the all-important manufacturing sector.  On an unadjusted basis, overall output in April was up just 1.4% from the same month one year earlier, after year-over-year gains of 4.4% in March and 5.0% in February.

Comment:  The third straight monthly decline in Mexican industrial output is yet another confirmation that Mexico's economy is hitting a soft spot along with most of the rest of the world.  Recent reports out of Mexico have shown slowing exports, falling investment, and weaker readings from purchasing managers in the manufacturing sector.  Nevertheless, today's report had a couple of relative bright spots.  Most notably, the report showed both manufacturing and construction rebounded in April after two straight months of declines, providing a reminder that the current economic softening does not necessarily mean the economy is falling off a cliff. 

Patrick Fearon, CFA
Vice President, Fund Management

                             Mexican Industrial Production
                           Seasonally Adjusted, 2003 = 100
                                          Source:  INEGI
Industrial Output 1104

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