Mexico’s economy is as good as ever
2022.12.01 11:35
Mexico’s economy is as good as ever
Budrigannews.com – According to Thursday’s survey, the industrial sector in Mexico expanded for three months in a row, slightly accelerating the pace of development. The expansion took place after preliminary signs indicating a recovery in consumption conditions, stabilization of total sales and job creation.
The SP Global index with changes in the NYSE season, the Purchasing Management Index in Mexico in November was 50.6, having increased by 50.3 since October and exceeding the critical level of 50.6, which distinguishes growth from decline.
The economic threat of the coronavirus pandemic has reduced Mexico’s production in more than two years since the beginning of March 2020. In early April 2020, due to the coronavirus in the country, the index fell to a record low of 35.0.
According to Pollyanna de Lima, deputy director of the Economics Department of SP Global Market Intelligence (SP Global Market Intelligence), the latest results indicate indecisive signs of a recovery in demand for Mexican goods, because companies mostly took additional costs and refused to increase prices, where they could try to increase sales.” According to the survey, the November indicator over 50.0 was primarily associated with an improvement in sales dynamics and active formation of the workplace.
Although the inflationary pressure is small, the costs of the introduced resources continue to grow at a rapid pace. In the first half of November, Mexico slowed annual prices for consumer products, reaching 8.14% compared with 8.53% in the month of the previous year.
However, core inflation exceeded market expectations, which still caused serious concern in Mexico due to the high level of spending. “Although the participants in the discussion continued to report rising prices for a wide range of raw materials, the November inflation rate decreased. Production prices have become the slowest in a year, although historically high inflation of raw materials costs,” De Lim continued.
According to the survey, enterprises were a little more optimistic about the future, but they were careful when it came to acquiring resources, manufacturing goods, storing stocks, as well as finding personnel.
De Lima believes that “external demand remained the key sources of weakness, which is confirmed by another drop in exports, which companies attribute to the difficult economic situation around the world, as well as new orders from the United States.
