Indicators of Imports and Exports of manufacturing in Nuevo León weakened in July

Monterey, NL. The manufacturing industry of New Lion continued its expansion in July, although imports and exports weakened, which could anticipate a decrease in foreign trade activity in the coming months.

This is indicated by the survey Economic Expectations in Manufacturingwhich was prepared by the Chamber of the Transformation Industry of Nuevo León (Caintra), held from August 5 to 23, to 93 companies.

New business orders showed signs of stability as they posted their fifth consecutive month above the expansion threshold; this variable reached 53.6 points in July.

On the other hand, the companies continued with an expansion in their production; For the sixth consecutive month, the physical volume of production reached 54.2 points, with a slight decrease compared to the previous month.

In turn, the capacity utilization indicator continued to expand during July, reaching 53.1 points.

Employment remained in the expansion zone, standing at 50.3 points in July, showing above 50 points since 2021. However, it is the first time in seven months that it is below 51 points.

Unlike the previous indicators, both imports and exports were positioned below the expansion threshold with 47.9 and 45.3 points, respectively. This could anticipate a decrease in foreign trade activity in the coming months, warned Caintra.

In relation to inflation, the prices of raw materials continued with the highest levels of all indicators, standing at 64.5 points, although it remains in the expansion phase, this indicator has been declining in relation to the month of March when it was was at 71.76 points.

Something similar occurs with the prices of the products that continued in the expansion phase, with 58.4 points in July and it is the third consecutive time that it is below 60 points.

What affects the most

Although the percentage of companies affected by increases in the prices of raw materials decreased, it was what affected a greater percentage of companies (39.6%), however, the proportion was lower than the previous month, which reached 50 percent .

The second factor that most affected the industry was the scarcity of water, which presented obstacles for 31% in the month of May, then dropped to 27.2% in June and had a rebound with 35.2% in July.

Finally, weak economic activity, the political landscape and a shortage of trained personnel continued to affect the industry, with one in three companies suffering from one or more of these factors, the survey said.