Mexico: Manufacturing and non-manufacturing PMI readings remained weak in April
Latest reading: The Mexican Institute of Financial Executives (IMEF) Manufacturing Purchasing Managers’ Index (PMI) increased from 47.6 in March to 49.0 in April. Despite this improvement, the index remained below the 50.0 no-change threshold, extending its more-than-two-year stay in contractionary territory and indicating that manufacturing-sector operating conditions continued to deteriorate, albeit at a slower pace. The headline print reflected notable improvements in key components: new orders rose by 4.0 points to 50.0, reaching the threshold, while output increased by 2.7 points to 50.8, moving into expansionary territory. The employment reading also increased marginally, rising by 0.5 points to 46.8, signaling a less severe contraction in labor conditions. In contrast, delivery times and inventories declined slightly and remained below the expansion threshold.
Meanwhile, the non-manufacturing PMI edged down from 49.0 in March to 48.9 in April, remaining below the expansion threshold and pointing to continued weakness in services and commerce. The headline deterioration was marginal, but the underlying components were mixed. New orders increased by 1.0 point to 49.2, though they remained in contractionary territory, while output rose sharply by 3.1 points to 50.1, moving into expansionary territory. In contrast, the employment component fell by 2.1 points to 47.5, indicating a deeper contraction in hiring, and delivery times dropped by 3.1 points to 48.3, returning to contractionary territory. Overall, the April data suggest that non-manufacturing activity remains fragile.