MexECON Blog

April Fixed Investment Rises 1.4 Percent

Gross fixed investment in Mexico jumped by a seasonally-adjusted 1.4% in April, easily erasing the revised declines of 0.5% in March and 0.3% in February.  According to the report, released last week by the official statistics agency INEGI, the strong increase in April came mostly from a 2.6% rise in machinery and equipment investment.  New construction was up a modest 0.5%.  On an unadjusted basis, total fixed investment in April was up 7.1% from the same month one year earlier.

Comment:  The strong rebound in Mexican investment during April is gratifying, especially as the decreases in March and February were the first back-to-back declines since late 2009.  The rise in investment suggests the economy may have more momentum than previously thought, which could help it weather the current soft spot in the global economic recovery.

Patrick Fearon, CFA
Vice President, Fund Management

         Gross Fixed Investment in Mexico
           Seasonally Adjusted, 2003 = 100
                            Source:  INEGI
Fixed Investment 1104

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