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IMEF Manufacturing Indicator continues to expand

The IMEF Manufacturing Indicator for Mexico decreased 0.7 points in April to 50.3 units, thus remaining in the expansion zone for the second month.

The trend-cycle series of the IMEF Manufacturing Indicator increased 0.3 points to close at 50.7 units, placing it in the expansion zone for the third consecutive month.

For its part, the Indicator adjusted by company size decreased 1.3 points to close at 53.4 units, remaining in the expansion zone for the tenth consecutive month.

During April, three of the five components of the IMEF Manufacturing Indicator registered decreases.

To begin with, the Production sub-index decreased 2.0 points to 52.6 units and remained in the expansion zone for four consecutive months.

At the same time, the Inventories sub-index fell 1.6 points to close at 47.2 units, thus remaining in a contraction zone for the third consecutive month.

The Employment sub-index fell marginally, by 0.2 points, to close at 52.2 units and thus remained in the expansion zone for three consecutive months.

In turn, the New Orders sub-index increased marginally, by 0.1 points, to close at 53.1 units, and thus remained in the expansion zone for the third month, while the Product Delivery sub-index increased 1.4 units to 49.0 points, adding five months in the contraction zone.

IMEF Manufacturing Indicator

In sum, from the Institute perspective, although recent data seem to indicate a greater dynamism in economic activity, there are still latent risks that suggest caution.

Specifically, problems prevail in supply chains, mainly due to the lack of semiconductors; a situation that is likely to take a few months to resolve and that may continue to generate distortions in global trade.

Additionally, a third wave of Covid-19 infections cannot be ruled out, especially after the recent increase in mobility rates in Mexico.

Finally, while political uncertainty may continue to dampen investment prospects, the still deteriorating labor market may continue to undermine household income and thus private consumption.

The IMEF Non-Manufacturing Indicator registered an increase in March of 1.3 points in April to close at 53.2 units and remain in the expansion zone for the second month.

 

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