Mexico: Economic activity growth picks up pace in July
Latest reading: The monthly indicator for economic activity (IGAE) grew 0.6% month-on-month in seasonally adjusted terms in July (June: +0.2% mom), far above market expectations. The upturn was driven by pickups in the manufacturing, services and primary sectors.
On an annual basis, economic activity rose 3.8% in July (June: -0.4% yoy). Meanwhile, annual average growth of economic activity was 2.4% in July, mirroring June’s result.
Panelist insight: On the outlook, Goldman Sachs’ Alberto Ramos said:
“Going forward, real activity is likely to face headwinds from high rates, post-election policy uncertainty, a negative fiscal impulse, soft business confidence, and moderate external demand. On the positive side, household spending is likely to continue to benefit from still firm credit flows and still solid wage growth (including generous minimum wage increases).”