Economic Indicator Briefing - Mexico - Economic Activity

In November, economic activity declined a mild 1.5% over the same month the previous year, according to the monthly indicator for economic activity (IGAE, Indicador Global de la Actividad Económica). The figure was only a fraction of the 5.2% contraction recorded in October and also beat market expectations, which had anticipated economic activity would decline 1.7%.
The improvement over the previous month was driven by a recovery in both the industrial and the services sector. Industry contracted 1.0% year-on-year (October: -5.5% yoy) while services dropped 2.0% (October: -5.5% yoy). On the other hand, the agricultural sector decelerated from a 4.9% expansion in October to a 1.9% rise. A month-on-month comparison corroborates the improvement suggested by the annual figures, as economic activity expanded a robust 1.51% over the previous month in seasonally adjusted terms, well up from the 0.32% rise registered in October.

As a result of the smaller contraction in November, annual average growth in economic activity ended the declining trend that had started in May 2008 and remained unchanged at October's minus 7.0%.

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