MexECON Blog

April Industrial Production Rises 0.7 Percent

Mexican industrial production rose by a seasonally-adjusted 0.7% in April, after a strong 1.6% gain in March.  The rise in April came in large part because manufacturing production rose 1.1%, accelerating from a 1.0% rise in the previous month.  Utility output rose 1.0% for the second straight month, and construction activity edged up 0.2%.  In contrast, mining production fell 0.5% in Aril, for its second straight monthly decline.  On an unadjusted basis, overall industrial production in April was up 3.6% from the same month one year earlier.  The report was released today by INEGI, the official statistics agency.

Comment:  The continued expansion in Mexico's industrial activity during April probably came in large part from reaccelerating exports.  As policymakers at Banco de México noted last week, strengthening exports have helped offset a modest deceleration in Mexican domestic demand during the spring.  Unfortunately, it is unclear whether the upswing in exports and industrial activity will continue.  Europe's debt crisis has worsened again, and the global economic outlook has darkened.  Political leaders in several key countries have signaled renewed willingness to loosen policy and try to tackle their economic problems, but only time will tell if they can avoid a significant new pullback in the global economy. 

Patrick Fearon, CFA
Vice President, Fund Management

                                       Mexican Industrial Production
                                      Seasonally Adjusted, 2003 = 100
                                                     Source:  INEGI
Industrial Output 1204

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