Gross fixed investment in Mexico rose 20.1 percent in June compared to May, its first increase after four months of poor performance amid the covid-19 pandemic, the National Institute of Statistics and Geography (Inegi) said.
However, the indicator plummeted 24.1 percent in June compared to the same month of 2019, dragged down by a drop in construction and the purchase of machinery, according to the Inegi report.
The figures “may be subject to significant revisions due to the unusual impact of the covid-19 health emergency,” the Inegi said.
According to the seasonally adjusted data, the purchase of machinery and equipment by companies in Mexico grew 25.8 percent in June, compared to the previous month, while construction-related spending rose 13.7 percent in the same period.
Responding to the report, the Banorte Financial Group said the rebound in the indicator in June was the result of efforts to reopen the country’s economy, despite the persistence of the coronavirus.
“For investment, the outlook is still very tough,” Banorte warned.
“We think that uncertainty about the evolution of the pandemic and what the return to a new type of ‘normality’ will be like, will weigh significantly on corporate decisions.”
The Mexican government began to relax lockdown measures starting June 1 to gradually reactivate sectors of the economy idled by the pandemic.
…Sept. 8, 2020