MexECON Blog

May Industrial Output Rises 1.1 Percent

Mexico's May industrial production jumped by a seasonally-adjusted 1.1%, and April output was revised upward to show an increase of 0.3% instead of a slight decline in the previous release.  According to the report, issued last week by the official statistics agency INEGI, the rise in production during May was led by a 1.0% gain in manufacturing output.  Construction was up 0.2%, as was mining output.  Utility production was essentially flat.  On an unadjusted basis, overall output in May was up 4.6% from the same month one year earlier.

Comment:  Coupled with last week's report of a rebound in fixed investment during April, the report of rising industrial output in May suggests the Mexican economy is weathering the world economic soft spot in decent shape.  Nevertheless, the global slowdown could potentially last a long time, and weak international demand could eventually have more of an impact on Mexican exports and industrial activity.  For now, it looks like the Mexican economy will keep growing at a moderate pace, but there are risks to the downside.

Patrick Fearon, CFA
Vice President, Fund Management

                                Mexican Industrial Production
                              Seasonally Adjusted, 2003 = 100
                                             Source:  INEGI
Industrial Output 1105

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