After a good start to the year, Mexico’s economic activity slowed down last February, mainly due to less dynamism in the services sector, reveal the data published by the National Institute of Statistics and Geography (Inegi).
The Global Indicator of Economic Activity (IGAE) registered a growth of 0.1% in the second month of the year compared to the immediately preceding period, a rate lower than the 0.6% with which the year began and well below the 0.7% estimated by the Inegi.
Despite the above, the Mexican economy remained in positive territory, linking three months to the rise, with which it is placed 0.7% above the level reached in January 2020 prior to the health crisis.
“The result was supported by several factors, including: strong fundamentals for consumption; resilient external demand despite signs of a slowdown in some key sectors in the United States; a moderation in price pressures, particularly in the non-financial underlying; and the continued interest in nearshoring”, Banorte specialists explained in their report.
Industry was the main driver of the economy with monthly growth of 0.7% in February. The dynamism came from mining with an increase of 4.1%. However, some weakness prevailed in construction with a decline of 0.2% and manufacturing -0.5%, the latter impacted by a more challenging base.
Agricultural activities rebounded 4.2%, although it was not enough to offset the 6.4% drop in the previous month. However, it is consistent with greater dynamism in the sector’s exports and lower prices.
On the contrary, the services sector reported a decrease of 0.1%, a result that contrasts with the growth of 0.6% initially forecast.
Five of the nine categories that make up the sector reported decreases. Those with the greatest setbacks were lodging and restaurants with a monthly drop of 1.1%; government services, -0.7%; transportation; mail and storage, -0.6%; and wholesale trade, -0.5 percent.
In the opinion of Banorte specialists, the results of economic activity are consistent with their estimate of the Gross Domestic Product (GDP) for the first three months of the year, with growth of 1.0% quarterly and 3.7% annually.
JM
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