Gross Fixed Investment in Mexico accumulates 22 consecutive falls

The Gross Fixed Investment of Mexico accumulated 22 consecutive falls in November 2020 at an annual rate, informed the Inegi this Friday.

In year-on-year terms, Gross Fixed Investment showed a contraction of 11.3% in November.

Within it, total machinery and equipment expenses decreased 14.1% and in Construction they decreased 9.9% compared to the same month of 2019, with seasonally adjusted series.

In addition, The same indicator registered a monthly increase of 2.3%, after growing 3.0 percent in October.

In general, the Gross Fixed Investment Indicator provides information on the monthly behavior of fixed investment, made up of assets used in the production process for more than one year and subject to property rights.

This shows how a part of the gross value added in the economy is invested instead of being consumed.

In fact, the monthly data of the Gross Fixed Investment have been available since January 1993 and are expressed in physical volume indices with a fixed base in the year 2013 = 100.

Gross Fixed Investment

Inegi highlights the percentage variations in the seasonally adjusted or seasonally adjusted series, both with respect to the previous month and the same month of the previous year, since the vast majority of economic series are affected by seasonal factors.

Finally, these are periodic effects that are repeated every year and whose causes can be considered unrelated to the economic nature of the series, such as holidays, the fact that some months have more days than others, school vacation periods, the effect of weather. in the different seasons of the year, and other seasonal fluctuations, such as, for example, the higher production of toys in the months before Christmas caused by the expectation of higher sales in December.

In this sense, the seasonal adjustment or seasonal adjustment of economic series consists of removing these periodic intra-annual influences, because their presence makes it difficult to diagnose or describe the behavior of a series by not being able to adequately compare a certain month with the immediately preceding one.