MexECON Blog

February Fixed Investment Unchanged

Gross fixed investment in Mexico was unchanged in February, after revised increases of 1.6% in January, 1.9% in December, and 2.0% in November.  In February, gross investment in new machinery and equipment jumped 4.4%, accelerating from the increase of 1.7% in the previous month and marking its strongest increase since mid-2010.  However, that gain was offset by a sharp 2.5% decline in construction.  On an unadjusted basis, total fixed investment in February was up a healthy 11.7% from the same month one year earlier.  The report was released today by INEGI, the official statistics agency.

Comment:  Because of the strong investment increases from November through January, the flat performance in February is not at all alarming.  Mexican investment was due for a time out, and the recent softening in some U.S. data suggests that Mexican exports, industrial activity, and investment could all take a bit of a breather for the next several months.  That would be especially true of the European debt crisis worsens again.  Nevertheless, if the U.S. economy keeps growing, investment in Mexico will probably remain on an upward trend. 

Patrick Fearon, CFA
Vice President, Fund Management

                                      Gross Fixed Investment in Mexico
                                        Seasonally Adjusted, 2003 = 100
                                                      Source:  INEGI
Fixed Investment 1202

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