Investment leads aggregate demand drive in August

It has not recovered its pre-pandemic level and even less the level of its last peak, but gross fixed investment advanced solidly in August, which confirms the good and – surprising – performance of the Mexican economy during the third quarter of the year.

In the eighth month of the year, the indicator grew 1.9% per month, which more than offset the 1.5% drop it had in July and reached its best level since January 2020, shortly before the outbreak of the Covid-19 pandemic. 19 in Mexico, according to data published yesterday by the National Institute of Geography and Statistics (Inegi).

Within the variable, an outstanding growth of 2.6% was observed in the category of machinery and equipment, while the construction category had an expansion of 0.3 percent.

The growth of investment surpassed the advance of 0.7% that private consumption had, another figure reported yesterday, November 7, by the Inegi.

Although it underperformed on this occasion, it should be remembered that consumption – which weighs almost two thirds of GDP – is already moving above its pre-pandemic levels and has grown in 11 of the last 12 months. Last week the Inegi published its growth estimate for the third quarter of the year, which was a surprising quarterly 1%.

empresas@eleconomista.mx