MexECON Blog

February Fixed Investment Rises 1.6 Percent

Gross fixed investment in Mexico rose by a seasonally-adjusted 1.6% during February, after a revised 3.5% jump in January.  That marked the first back-to-back increases in fixed investment since last summer.  According to the report, released today by the official statistics agency INEGI, investment in machinery and equipment jumped 3.1% in February, after a strong increase of 2.1% in the first month of the year.  New construction rose only 0.5%, but that followed a January surge of 3.9%.  On an unadjusted basis, total fixed investment in February was up 0.5% from the same month one year earlier.

Comment:  Although the data on Mexican fixed investment comes with a long lag, today's report offers welcome confirmation that some sectors of the Mexican economy are reaccelerating again.  The construction increases in January and February suggest building activity is turning a corner after a period of relative softness in the second half of 2012.  The report on Mexican industrial production released last month carried a similar message.  Meanwhile, the rise in machinery and equipment investment was one of the strongest two-month increases in that category in the last several years.  In sum, today's report points to continued good growth in the Mexican economy in the coming months.

Patrick Fearon, CFA
Vice President, Fund Management

                                        Gross Fixed Investment in Mexico
                                          Seasonally Adjusted, 2003 = 100
                                                       Source:  INEGI
Fixed Investment 1302

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