The Mexican economy faces a “faltering” recovery process with a tendency toward weakness, especially in the manufacturing sector, the Mexican Institute of Finance Executives (IMEF) said Tuesday, Dec. 1.
In its monthly economic analysis, the private sector institute noted that the IMEF manufacturing index declined 1.1 points in November compared to the previous month, to settle at 48.5 units, registering below the growth threshold of 50 points for 18 consecutive months.
Meanwhile, the IMEF’s non-manufacturing index, which anticipates the behavior of the services sector, rose 1.5 points in November, but remained in the under-50 contraction zone for the 10th consecutive month, at 49.5 units.
“The results of the IMEF indicator for November, together with the information on the situation, confirm the continuing rising trend in economic activity, but the recovery is faltering and … seems to be weakening,” said the institute, which is composed of the financial managers of leading Mexican companies.
“This is clear in the manufacturing sector, which after a strong rebound in the previous months, in November showed a downward correction, although the trend continues to be upward.”
According to the IMEF, Mexico’s economic recovery is still far from pre-pandemic levels, and has continued to struggle with the record collapse in activity, especially in April and May, due to lockdown measures.
The three key indicators that suffered sharp drops in the first half of the year included gross fixed investment, domestic private consumption and industrial production, the institute said.
…Dec. 3, 2020