Economic activity in Mexico sees 1 percent yr/yr increase in August

(MENAFN) Mexico's economic activity in August saw a real-term increase of 1 percent on an annual basis, as reported by the country's statistical authority on Tuesday. This growth defied market expectations, which had predicted a decline of 0.9 percent, especially following a strong year-on-year gain of 3.8 percent recorded in July. The data, released by the National Institute of Statistics and Geography (INEGI), revealed contrasting performances across different sectors.

When examined on an annual basis, the primary and secondary sectors experienced declines of 2.1 percent and 0.3 percent, respectively. However, the tertiary sector, which includes services, showed a positive growth of 2.2 percent, contributing significantly to the overall economic performance. This indicates a shift in economic activity towards the service-oriented segment, highlighting its resilience despite challenges faced by other sectors.

On a month-to-month basis, Mexico's economic activity experienced a slight decline of 0.3 percent in August compared to the previous month, following a monthly gain of 0.6 percent in July. The monthly data suggests a potential slowing of momentum in economic activity, with specific sectors contributing to this trend. In August, the primary activities saw a significant drop of 9.1 percent, and secondary activities also fell by 0.5 percent. Meanwhile, the tertiary activities managed to grow modestly by 0.3 percent.

Overall, these figures present a mixed picture of Mexico's economy, with annual growth driven by the tertiary sector while primary and secondary sectors face headwinds. The decline in monthly economic activity raises questions about the sustainability of growth moving forward, particularly as sectors exhibit varied performance amid fluctuating economic conditions.

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