💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

Mexico factory activity in negative territory for second straight month

Published 01/02/2019, 10:38 AM
Updated 01/02/2019, 10:40 AM
© Reuters. FILE PHOTO: An employee measures steel plates at Kalisch Steel factory in Ciudad Juarez

MEXICO CITY (Reuters) - Mexico's manufacturing sector contracted for the second month running in December, dragged down by declining business sentiment, a survey showed on Wednesday.

The IHS Markit Mexico Manufacturing Purchasing Managers' Index registered a reading of 49.7 in December, the same level as a month earlier.

A reading above 50 signals expansion in the sector, while a reading below points to contraction.

Mexico's new president Andres Manuel Lopez Obrador took office on Dec. 1. Mexican financial markets have been rattled amid concerns about how the leftist leader could shift economic policy in Latin America's No. 2 economy.

The December and November figures were the lowest readings since October 2017, and the first time there were two consecutive months of contraction in the current series, which dates to April 2011.

"The Mexican manufacturing sector showed little signs of shaking off its fragility in December, posting back-to-back modest contractions in production," said IHS Markit economist Pollyanna De Lima.

"Data suggested that the domestic and international markets were sources of weakness, reflecting the wider sluggish performance of the Mexican economy and relatively low sales to the US."

Mexico sends about 80 percent of its exports, which are mostly manufactured goods like cars and televisions, to the United States.

© Reuters. FILE PHOTO: An employee measures steel plates at Kalisch Steel factory in Ciudad Juarez

The PMI index is composed of five sub-indexes tracking changes in new orders, output, employment, suppliers' delivery times and stocks of raw materials.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.