Mexico's Industrial Production Declines in March

2023-05-14 02:23:57

(MENAFN) Mexico's industrial output contracted by 0.9 percent in March compared to the previous month, according to the country's statistical authority, the National Institute of Statistics and Geography (INEGI). This figure was worse than market estimates of a 0.2 percent contraction, while industrial production had increased by 0.5 percent in February. The decline was driven by a 3.5 percent decrease in industrial output in mining, while construction rose by 1.3 percent.

On an annual basis, industrial activity was up 1.6 percent in March compared to the same month of last year. However, this figure also came in lower than the market expectation of a 2.7 percent gain, while it showed an increase of 3.3 percent in February. The figures showed that while industrial output in mining increased by 2.5 percent year-on-year, construction rose by 2 percent.

INEGI noted that, at an annual rate and with seasonally adjusted series, the monthly industrial activity indicator grew by 1.5 percent in real terms during March. The decline in industrial output in March highlights the challenges faced by the Mexican economy, which has been struggling to recover from the impact of the COVID-19 pandemic.

The decline in industrial output is also likely to have an impact on the country's labor market and economic growth. Mexico's economy contracted by 8.2 percent in 2020, its worst performance since the Great Depression, and the government has been struggling to stimulate growth and create jobs. The decline in industrial output in March is likely to add to the challenges faced by the government in achieving its economic targets.

The Mexican government has announced a series of measures to support the economy, including tax breaks for small businesses and infrastructure spending. However, analysts have warned that more needs to be done to support the recovery and create jobs. The decline in industrial output in March underlines the need for continued government action to support the economy and ensure a sustainable recovery.

MENAFN14052023000045014228ID1106238821

Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.