MexECON Blog

March Industrial Production Falls 0.1 Percent

Mexico's March industrial production declined by a seasonally-adjusted 0.1%, after revised increases of 0.3% in February and 0.5% in January.  The decrease in March reflected a 0.5% fall in mining production and a 0.3% drop in manufacturing output.  In contrast, March construction output eked out a 0.1% gain, and utility production rose 0.3%.

On an unadjusted basis, overall industrial production in March was up a modest 3.4% from the same month one year earlier.  Manufacturing production was up a robust 6.8% year-over-year, and utility output was up 4.1%.  However, mining production was up just 0.6% year-over-year, and construction output was down 1.4%.

The report was released today by INEGI, the official statistics agency.

Comment:  The trend in Mexican industrial production is suggestive of an economy that just can't seem to accelerate.  Mexican exports in recent months have been a bit stronger than in 2013, which helps explain the good year-over-year gain in manufacturing, but the improvement in sales abroad has been limited.  At the same time, construction remains in a deep freeze, and consumer demand is weak.  These problems are likely to continue weighing on the industrial sector and the overall economy in the near term.

Patrick Fearon, CFA
Vice President, Fund Management

Industrial Production 1403

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