Thursday November 09 2017
Mexico Inflation Rate Rises Slightly in October
INEGI |Luisa Carvalho | luisa.carvalho@tradingeconomics.com

Consumer prices in Mexico went up 6.37 percent year-on-year in October of 2017, slightly above 6.35 percent in the previous month and missing market expectations of 6.34 percent, mostly due to seasonal factors related to September's earthquakes. Cost grew faster for energy, education and housing and utilities while it slowed down for food and non-alcoholic beverages. The central bank expects inflation to stay above the 3-4 percent target in 2017 and to converge to 3 percent by the end of 2018.

Prices went up faster for: energy (16.34 percent vs 15.26 percent in September); housing and utilities (2.65 percent vs 2.64 percent) and education (4.74 percent 4.73 percent). Meanwhile, cost slowed for food and non-alcoholic beverages (6.73 percent vs 7.05 percent).

On a monthly basis, consumer prices inched up 0.63 percent, compared to a 0.31 percent rise in September and slightly above market expectations of 0.6 percent.

The core index, which strips out some volatile food and energy prices, advanced 0.25 percent during the month and 4.77 percent year-on-year.




Tuesday October 31 2017
Mexico GDP Shrinks For First Time in Over 4 Years
INEGI | Luisa Carvalho | luisa.carvalho@tradingeconomics.com

The Mexican economy contracted 0.2 percent on quarter in the third quarter of 2017, following a 0.6 percent rise in the previous period. Industry and services were the main contributors to the decline, preliminary estimates showed. It was the first contraction since the second quarter of 2013, after the country was hit by two devastating earthquakes in September and also hurricanes.

The industry sector tumbled 0.5 percent and services declined 0.1 percent. Meanwhile, the agricultural sector went up 0.5 percent.

Year-on-year, the GDP advanced 1.6 percent in the third quarter of 2017, compared to an upwardly revised 1.9 percent expansion in the previous period.




Tuesday October 31 2017
Mexico Economy Grows the Least Since Q4 of 2013
INEGI | Luisa Carvalho | luisa.carvalho@tradingeconomics.com

The Mexican gross domestic product advanced 1.6 percent year-on-year in the third quarter of 2017, compared to an upwardly revised 1.9 percent expansion in the previous period. It was the lowest growth rate since the fourth quarter of 2013, mainly due to a slowdown in output of services and agriculture while the industrial sector fell less, preliminary estimates showed.

The services sector advanced 2.4 percent, slower than 3.1 percent in the second quarter and agriculture rose 0.9 percent, following a 1.4 percent gain in the previous period. Meantime, industrial production shrank 0.5 percent, less than a 1.4 percent fall in the three previous months.

On a quarterly basis, the economy declined a seasonally adjusted 0.2 percent compared to a 0.6 percent increase in the previous quarter. It was the first contraction since the second quarter of 2013, after the country was hit by two devastating earthquakes in September and also hurricanes.




Thursday October 26 2017
Mexico Posts Biggest September Trade Deficit in 3 Years
INEG | Stefanie Moya | stefanie.moya@tradingeconomics.com

Mexico trade deficit widened to USD 1886 million in September of 2017 from a USD 1527 million shortfall a year ago and well above market expectations of a USD 985 million gap. It is the highest trade gap since 2014 when a USD 481 million surplus was recorded. Imports increased 4.3 percent year-on-year to USD 35704 million, due to higher purchases of consumption goods (7 percent), namely oil (11.5 percent). Exports rose 3.4 percent year-on-year to USD 33818 million, mainly due to 3.6 percent rise in non oil sales. Non-oil shipments to the US went up 1.1 percent.

Year-on-year, exports rose 3.4 percent to USD 33818 million in September of 2017. Non oil sales, which account for around 95 percent of total exports, increased 3.6 percent and exports of oil went up 1.1 percent. Within non-oil exports, sales rose for manufacturing (3.5 percent), namely steel products (19 percent); food, beverages and tobacco (13.1 percent) and auto products (7.7 percent), electrical and electronic equipment (5.6 percent) and professional and scientific equipment (2.2 percent).

Sales of auto products to the US advanced 1.6 percent and to the rest of the world 50.8 percent. Considering the first nine months of the year, auto exports to the US accounted for around 27 percent.

Imports increased 4.3 percent year-on-year to USD 35704 million, due to higher purchases of consumption goods (7 percent), namely oil (11.5 percent); intermediate goods (4.9 percent), while capital goods fell 3.1 percent. 




Friday October 20 2017
Mexico Jobless Rate Declines to 3.6% in September
INEGILuisa Carvalho | luisa.carvalho@tradingeconomics.com

The unemployment rate in Mexico fell to 3.6 percent in September of 2017 from 4.1 percent a year earlier and matching market expectations. When adjusted for seasonality, the jobless rate remained steady at 3.3 percent.

Compared to September of 2016, the jobless rate went down for both men (3.6 percent from 4 percent) and women (3.6 percent from 4.4 percent). Among unemployed people, 17.3 percent had not completed secondary education and 82.7 percent had a higher education.

Those underemployed accounted for 7.8 percent of total employed, higher than 7.1 percent a year ago.

The participation rate fell to 59.1 percent from 59.7 percent in September of 2016.




Monday October 09 2017
Mexico Inflation Rate Slows to 6.35% in September
INEGI |Luisa Carvalho | luisa.carvalho@tradingeconomics.com

Consumer prices in Mexico rose 6.35 percent year-on-year in September of 2017, easing from 6.66 percent in the previous month and lower than market expectations of 6.48 percent. The inflation rate decelerated for the first time since June last year to hit the lowest level in three months, driven by lower prices of food. The central bank expects inflation to stay above the 3-4 percent target in 2017 and to converge to 3 percent by the end of 2018.

Prices slowed for food, beverages and tobacco (7.05 percent vs 7.57 percent in August). Meanwhile, cost rose faster for housing and utilities (2.64 percent vs 2.62 percent); education (4.73 percent vs 4.63 percent) and energy (15.26 percent vs 12.72 percent).

On a monthly basis, consumer prices went up 0.31 percent, also easing from a 0.49 percent increase in the previous month.

The core index, which strips out some volatile food and energy prices, advanced 0.28 percent during the month and 4.80 percent year-on-year.


Wednesday September 27 2017
Mexico Trade Gap Widens 45% YoY in August
INEGI |Luisa Carvalho | luisa.carvalho@tradingeconomics.com

Mexico posted a trade deficit of USD 2732 million in August of 2017 compared with a USD 1884 million shortfall in the same month of the previous year, well above market expectations of a USD 1498 million gap. Exports rose 10.3 percent from a year ago to USD 35.8 billion and imports advanced at a faster 12.2 percent to USD 38.5 billion, the highest value on record. Considering the January to August period, the trade deficit shrank 33.4 percent to USD 7.16 billion, as exports rose 10.1 percent and imports soared 8.2 percent.

Year-on-year, exports rose 10.3 percent to USD 35.78 billion in August of 2017, marking the tenth consecutive month of annual gain. Non-oil sales, which account for around 95 percent of total exports, increased 10.6 percent and exports of oil went up 4.1 percent. Within non-oil exports, sales of manufactured goods rose 10.7 percent, driven by exports of food, beverages and tobacco (20.7 percent); automotive products (15.6 percent); electronic goods and appliances (12.9 percent); professional and scientific equipment (11.4 percent) and special machinery and equipment for industries (9.1 percent). Also, sales advanced for agricultural and fisheries (4.1 percent), namely those of raw coffee beans (90.6 percent); fruits and edible fruits (51.9 percent); citrus (37 percent); mango (23.5 percent) and fresh vegetables (18.1 percent). Meantime, shipments of mining products jumped 19.2 percent, compared to a 14.5 percent rise in July.

Exports to the United States surged 9.3 percent, accounting for around 82 percent of total non-oil shipments. Auto sales to the US increased 10.5 percent and exports of other products advanced 8.6 percent. Sales to the rest of the world rose 16.9 percent, with autos jumping 44.9 percent and other products climbing 7 percent.

Imports advanced 12.2 percent to USD 38.51 billion, the highest value on record, driven by higher purchases of intermediate goods (12.9 percent), consumption goods (12 percent) and capital goods (7.2 percent).

On a seasonally adjusted basis, exports went up 1.96 percent to USD 34.23 billion, led by an increase of 2.43 percent in non-oil shipments while oil sales fell 6.39 percent. Imports grew at a faster 3.35 percent to USD 35.52 billion, with advances in both oil purchases (15.58 percent) and non-oil imports (2.13 percent), thus widening the trade deficit to USD 1283 million from USD 789 million in the previous period.


Tuesday September 26 2017
Mexico Jobless Rate Falls to 3.5% in August
INEGI Luisa Carvalho | luisa.carvalho@tradingeconomics.com

The unemployment rate in Mexico declined to 3.5 percent in August of 2017 from 4 percent a year earlier but above market expectations of 3.4 percent. When adjusted for seasonality, the unemployment rate increased to 3.3 percent from 3.2 percent.

Compared to August of 2016, the jobless rate decreased for both men (3.3 percent from 3.8 percent) and women (4 percent from 4.3 percent). Among unemployed people, 16 percent had not completed secondary education and 84 percent had a higher education.

Those underemployed accounted for 6.8 percent of total employed, lower than 8.3 percent a year ago.

The participation rate fell to 59 percent from 60.2 percent in August of 2016.


Thursday September 07 2017
Mexico Inflation Rate Hits Highest Level in Over 16 Years
INEGI |Luisa Carvalho | luisa.carvalho@tradingeconomics.com

Consumer prices in Mexico jumped 6.66 percent year-on-year in August of 2017, following a 6.44 percent rise in July and matching market expectations. The inflation rate accelerated for the fourteenth consecutive month to hit the highest level since May of 2001, led by higher prices of food, housing & utilities, energy and education. On a monthly basis, consumer prices rose 0.49 percent. The central bank expects inflation to stay above the 3-4 percent target in 2017 and to converge to 3 percent by the end of 2018.

Prices continued to advance for food, beverages and tobacco (7.57 percent vs 7.25 percent in July); housing and utilities (2.62 percent vs 2.56 percent) and education (4.63 percent vs 4.32 percent). Meanwhile, cost of energy slowed a bit, despite staying high (12.72 percent vs 13.07 percent).

On a monthly basis, consumer prices went up 0.49 percent compared to a 0.38 percent increase in the previous month.

The core index, which strips out some volatile food and energy prices, rose 0.25 percent during the month and 5.00 percent year-on-year.


Monday August 28 2017
Mexico Trade Gap Narrows 16.6% YoY In July
INEGI | Luisa Carvalho | luisa.carvalho@tradingeconomics.com

Mexico posted a trade deficit of USD 1523 million in July 2017 compared with a USD 1825 million trade gap in the same month of the previous year but well above market expectations of a USD 816 million shortfall. It is the smallest trade deficit for a July month since 2014. Exports rose 8 percent and imports advanced at a slower 6.6 percent.

Exports rose to USD 32.16 billion in July, marking the ninth consecutive month of annual gain. Non-oil sales, which account for 94 percent of total exports, increased 7.4 percent and exports of oil grew 19.3 percent. Within non-oil exports, sales of manufactured products rose 7.2 percent, driven by exports of food (27.2 percent); steel products (16.4 percent); automotive products (13.2 percent); special machinery and equipment for industries (4.7 percent) and professional and scientific equipment (11.3 percent). In addition, sales surged for agricultural and fisheries (10.8 percent) and mining products (14.5 percent).

Exports to the United Sates grew 6.7 percent, accounting for more than 80 percent of total non-oil shipments. Auto sales to the US rose 10.5 percent and exports of other products advanced 5 percent. Sales to the rest of the world increased 10.5 percent, with autos jumping 27.2 percent and other products soaring 4.7 percent.

Imports advanced to USD 33.69 billion, driven by higher purchases of intermediate goods (8.2 percent), consumption goods (2.4 percent) and capital goods (0.4 percent).

Considering the January to July period, the trade deficit shrank to USD 4.43 billion from USD 8.88 billion in the same period of 2016, as exports rose 10.1 percent to USD 229.69 billion and imports grew at a slower 7.6 percent to USD 234.12 billion.