Mexico’s Gross Fixed Investment falls 10.2%
Mexico’s Gross Fixed Investment fell 10.2% in real terms and at the yoy rate in February, the Inegi reported.
Inside, total machinery and equipment expenses fell 11.5% and Construction fell 8.7% compared to February 2019, with seasonally adjusted series.
In sum, the global data represented the largest annual drop in fixed investment since October 2009.
With this data, 13 consecutive months of contraction of gross fixed investment in Mexico were accumulated.
Gross Fixed Investment and methodology
The Gross Fixed Investment Indicator (IFB) provides information on the monthly behavior of fixed investment, made up of assets used in the production process for more than a year and which are subject to property rights. It shows how a part of the gross value added in the economy is invested instead of being consumed.
The monthly data for gross fixed investment are available since January 1993 and are expressed in fixed volume physical volume indices in 2013 = 100.
This document highlights the percentage variations of the seasonally adjusted or seasonally adjusted series, both with respect to the previous month and compared to the same month of the previous year, since the vast majority of economic series are affected by seasonal factors.
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, the periods of school holidays, the effect of the weather in the different seasons of the year, and other seasonal fluctuations such as, for example, the increased production of toys in the months before Christmas caused by the expectation of higher sales in December.
In this sense, the deseasonalization or seasonal adjustment of economic series consists in removing these periodic intra-annual influences, since 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.
