Mexico’s economy is in a phase of chiaroscuro, indicated the Mexican Institute of Finance Executives (IMEF) when interpreting its two indicators on the state and direction of manufacturing production, consumption and services in the country.
The IMEF Manufacturing and Non-Manufacturing indicators for August registered a downward movement, which suggests that, after the “good start” of the quarter the previous month, the economy is entering a process of less dynamism in this second half of 2022 compared to the first half.
On the one hand, the IMEF Manufacturing Indicator closed slightly below the threshold of 50, that is, in a contraction zone. On the other hand, the Non-Manufacturing Indicator continues to register expansion levels, but at a slower rate than in July.
“This behavior, together with the most recent economic information, suggest that the economy is in a dark phase,” the IMEF said in its monthly report.
During the first two quarters of this year, the economy grew at quarterly rates of around 1.0 percent.
“Although there are no signs of a generalized contraction at the beginning of the second half of the year, recent indicators suggest a increase less solid towards the end of 2022”, added the IMEF.
Specifically, the IMEF Manufacturing Indicator for August registered a drop of 1.8 points compared to July 2022, standing at 49.4 units, and thus returning to contraction territory
The IMEF Indicator varies in an interval from 0 to 100 points and the level of 50 points represents the threshold between an expansion (greater than 50) and a contraction (less than 50) of economic activity.
For its part, the IMEF Non-Manufacturing Indicator decreased 0.1 points during the same period, and stands at 51.9 units, thus adding seven consecutive months above the threshold of 50.
Although GDP growth as of the second quarter of 2022 was positive, with an increase of 0.9% compared to the previous quarter and 1.9% compared to the second quarter of 2021, the global index of economic activity (IGAE) showed a drop monthly in May, and a larger drop in June (-0.3 percent).
inside the GDP growth In the second quarter, both secondary and tertiary activities grew 0.9% compared to the previous quarter.
However, the IGAE in June did not show the same dynamism that was observed in the quarterly result, since secondary and tertiary activities grew minimally (0.1 and 0%, respectively).
The IMEF evaluated that this possibly indicates that the slowdown in June was offset by the positive behavior of April, giving positive results in the quarterly GDP.
Likewise, the Timely Indicator of Economic Activity (IOAE) indicates that in July there would be a slowdown in the IGAE total, as well as in secondary (-0.2%) and tertiary activities (-0.1%), which would continue the monthly slowdown and affect the behavior of GDP for the third quarter of 2022.
On the other hand, the IMEF considered that total employment for June has continued to increase, but the open unemployment rate was 3.35% in June, higher than its May level of 3.27 percent.
In addition, the number of new jobs registered with the IMSS had increased monthly until June, but the number of new jobs registered in July decreased very significantly.
The available data on consumption and investment showed falls in the month of May, which were also reflected in the IGAE.
hartford car insurance shop car insurance best car insurance quotes best online car insurance get auto insurance quotes auto insurance quotes most affordable car insurance car insurance providers car insurance best deals best insurance quotes get car insurance online best comprehensive car insurance best cheap auto insurance auto policy switching car insurance car insurance quotes auto insurance best affordable car insurance online auto insurance quotes az auto insurance commercial auto insurance instant car insurance buy car insurance online best auto insurance companies best car insurance policy best auto insurance vehicle insurance quotes aaa insurance quote auto and home insurance quotes car insurance search best and cheapest car insurance best price car insurance best vehicle insurance aaa car insurance quote find cheap car insurance new car insurance quote auto insurance companies get car insurance quotes best cheap car insurance car insurance policy online new car insurance policy get car insurance car insurance company best cheap insurance car insurance online quote car insurance finder comprehensive insurance quote car insurance quotes near me get insurance