Thursday November 08 2018
Mexico Inflation Rate Ticks Down to 4.9% in October
INEGI | Luisa Carvalho | luisa.carvalho@tradingeconomics.com

The annual inflation rate in Mexico eased to 4.9 percent in October 2018 from 5.02 percent in September, as widely expected. Prices rose less mainly for energy and housing.

Year-on-year, inflation softened for energy (17.10 percent vs 19.20 percent in September) and housing (2.59 percent vs 2.62 percent). Also, cost increased at the same pace for education (4.69 percent). On the other hand, prices advanced faster for food, beverages & tobacco (4.84 percent vs 4.80 percent) and other services including restaurants, telephone services, medical services and package tourist services (4.30 percent vs 4.09 percent).

On a monthly basis, consumer prices inched up 0.52 percent, compared to a 0.42 percent rise in September and market consensus of a 0.51 percent gain. Main upward pressure stemmed from prices of electricity (17.82 percent vs -0.67 percent in September), agricultural goods such as tomatoes (10.12 percent vs 4.26 percent), professional services (13.24 percent vs -17.10 percent) and air fares (12.88 percent vs -4.89 percent). Meanwhile, cost advanced less for gasoline (0.90 percent vs 1.47 percent) and domestic gas (0.90 percent vs 5.30 percent).

The core index, which strips out some volatile food and energy prices increased by 0.31 percent during the month (0.32 percent in September) and went up by 3.73 percent on a yearly basis (3.67 percent in September).




Tuesday October 30 2018
Mexico GDP Annual Growth Rate at 2.6% in Q3
INEGI Luisa Carvalho | luisa.carvalho@tradingeconomics.com

The Mexican economy expanded 2.6 percent year-on-year in the third quarter of 2018, the same as in the previous period, a preliminary estimate showed. It remained the strongest growth rate since the first quarter of 2017, mainly due to services and primary activities. Meantime, the industrial sector grew at a slower pace.

Services advanced 3.4 percent, after rising 3.3 percent in the second quarter and primary activities grew 2.2 percent, following a 1.8 percent growth in the previous period. On the other hand, the industrial sector expanded at a slower pace (1.1 percent vs 1.3 percent in Q2).

On a quarterly basis, the economy grew 0.9 percent, recovering from a 0.2 percent contraction in the second quarter of 2018.




Tuesday October 30 2018
Mexico Economy Returns to Growth in Q3
INEGI | Luisa Carvalho | luisa.carvalho@tradingeconomics.com

The Mexican economy advanced 0.9 percent on quarter in the three months to September of 2018, reversing from a 0.2 percent contraction in the previous period, a preliminary estimate showed. Both the industrial sector and the primary sector recovered and services grew faster.

The industrial sector rebounded 0.5 percent, following a 0.3 percent decline in the previous period and the primary sector recovered 0.8 percent after a 2.1 percent contraction in the second quarter. The services sector grew 0.8 percent, faster than a 0.2 percent expansion in the second quarter.

Year-on-year, the Mexican economy grew 2.6 percent, the same pace as in the previous period.




Friday October 26 2018
Mexico Trade Deficit Narrows in September
INEGI | Stefanie Moya | stefanie.moya@tradingeconomics.com

Mexico trade deficit narrowed to USD 194 million in September of 2018 from USD 1934 million in the same month a year earlier and compared with market consensus of a USD 1875 million shortfall. It was the smallest trade gap since December last year, as exports increased 12 percent and imports rose at a softer 6.4 percent.

Year-on-year, exports jumped 12 percent to USD 37,806 million in September 2018, with non-oil sales, which represented around 92.7 percent of total exports, increasing 10 percent to USD 35,031 million. Sales went up for machinery and special equipment for diverse industries (19.1 percent); automotive products (17.8 percent); steel products (17.8 percent) and plastic and rubber goods (11.6 percent). Additionally, sales of agricultural and fishing goods rose 1.0 percent, namely fish, crustaceans and mollusks (66.7 percent), cattle (41.3 percent) and fresh vegetables (30 percent).

Oil exports surged 43.8 percent to USD 2,775 million in September. The country exported 1,206 million barrels of oil a day, higher than the 1,159 million recorded in the corresponding month of 2017. Crude oil prices rose to USD 68.44 a barrel, USD 20.14 more than in September last year.

Non-oil shipments to the US, which accounted for more than 80 percent of total sales, increased 9.8 percent, driven by autos (16.9 percent) and other products (5.9 percent). Sales to the rest of the world went up 11.2 percent, as exports of both autos (22.2 percent) and other products (6.2 percent) rose.

Imports advanced 6.4 percent to USD 37,999 million, as non-oil (5.1 percent) and oil purchases (18 percent) increased. Non-oil imports were boosted by intermediate goods (7 percent), consumer goods (1.8  percent) and capital goods (9.1 percent).

On a seasonally adjusted monthly basis, the trade gap declined to USD 460 million from USD 1,172 million, as exports went up 0.9 percent to USD 38,939 million and imports fell 0.9 percent to USD 39,399 million. 




Tuesday October 09 2018
Mexico Inflation Rate Hits 6-Month High of 5.02%
INEGI | Luisa Carvalho | luisa.carvalho@tradingeconomics.com

The annual inflation rate in Mexico rose to 5.02 percent in September 2018 from 4.9 percent in August and slightly above market expectations of 5.01 percent. It was the highest inflation rate since March, as prices continued to climb especially for energy and food, beverages & tobacco. On the other hand, cost eased for education.

Year-on-year, prices advanced further for: energy (19.20 percent vs 18.96 percent in August); food, beverages and tobacco (4.80 percent vs 4.55 percent); other services including restaurants, telephone services, medical services and package tourist services (4.09 percent vs 3.81 percent) and housing (2.62 percent vs 2.56 percent). Meanwhile, inflation slowed for education (4.69 percent vs 5.02 percent).

On a monthly basis, consumer prices went up 0.42 percent, following a 0.58 percent gain in August, and slightly above market expectations of 0.41 percent. Prices slowed mostly for gasoline (1.47 percent vs 2.73 percent) and agricultural goods such as onions (7.76 percent vs 42.5 percent) and tomatoes (4.26 percent vs 20.78 percent).

The core index, which strips out some volatile food and energy prices increased by 0.32 percent during the month (0.25 percent in August) and was up by 3.67 percent on a yearly basis (3.63 percent in August).


Thursday September 27 2018
Mexico Trade Gap Widens Slightly in August
INEGI Luisa Carvalho | luisa.carvalho@tradingeconomics.com

Mexico recorded a trade deficit of USD 2591 million in August of 2018 from USD 2585 million a year earlier and compared with market expectations of a USD 2204 million shortfall. Exports soared 10.1 percent and imports advanced at a softer 9.4 percent.

Year-on-year, exports surged 10.1 percent to USD 39,537 million in August 2018, with non-oil sales, which represented around 93.1 percent of total exports, rising 8.0 percent to USD 36,813 million. Shipments increased for manufactured products (8.5 percent), mainly steel products (32.1 percent); machinery and special equipment for diverse industries (14.5 percent); automotive products (11.8 percent) and food, beverages & tobacco (8.3 percent): and mining products (10.3 percent). In contrast, they decreased for agricultural and fishing goods (-7.4 percent), namely frozen shrimp (-42.2 percent); chickpeas (-37.8 percent); raw coffee beans (-26 percent); mango (-18.4 percent) and avocados (-12.6 percent).

Oil exports increased 47.2 percent to USD 2,724 million in August 2018. Mexico exported 1,181 million barrels of oil a day, above the 1,114 million recorded in the corresponding month of 2017. Crude oil prices were up to USD 63.71 a barrel, USD 17.86 million more than in August of 2017.

Non-oil dispatches to the US, which accounted for more than 81 percent of total sales, rose 10 percent, boosted by exports of autos (15.9 percent) and other products (7.1 percent). Sales to the rest of the world fell 0.4 percent, as a 6.0 percent decline in exports of autos offset a 2.3 percent increase in those of other products.

Imports grew 9.4 percent to USD 42,127 million, as non-oil purchases advanced 7.8 percent to USD 37,175 million, driven by purchases of intermediate goods (8.4 percent), consumer goods (15.0 percent) and capital goods (9.3 percent). Meantime, oil imports surged 22.9 percent to USD 4,952 million.

On a seasonally adjusted monthly basis, the trade shortfall narrowed to USD 1,316 million from USD 1,616 million, as exports went up 3.58 percent to USD 38,387 million and imports rose at a slower 2.65 percent to USD 39,703 million.


Friday September 07 2018
Mexico Inflation Rate Ticks Up to 5-Month High of 4.9%
INEGI | Luisa Carvalho | luisa.carvalho@tradingeconomics.com

The annual inflation rate in Mexico increased to 4.9 percent in August 2018 from 4.8 percent in July and above market expectations of 4.83 percent. It was the highest inflation rate since March, due to an overall rise in prices namely for energy and food. Meanwhile, cost went up slightly less for housing.

Year-on-year, prices continued to advance for: energy (18.96 percent vs 17.63 percent in July); food, beverages and tobacco (4.55 percent vs 4.51 percent); other services including restaurants, telephone services, medical services and package tourist services (3.81 percent vs 3.61 percent) and education (5.02 percent vs 4.79 percent). On the other hand, inflation eased slightly for housing (2.56 percent vs 2.61 percent).

On a monthly basis, consumer prices went up 0.58 percent, following a 0.54 percent increase in July and exceeding market expectations of a 0.51 percent gain. Main upward pressure came from prices of gasoline (2.73 percent) and agricultural goods such as onion (42.5 percent) and lemons (24.52 percent).

The core index, which strips out some volatile food and energy prices went up 0.25 percent during the month (0.29 percent in July) and was up 3.63 percent on a yearly basis (the same as in July).


Monday August 27 2018
Mexico Trade Gap Widens Strongly in July
INEGI Luisa Carvalho | luisa.carvalho@tradingeconomics.com

Mexico recorded a trade deficit of USD 2889 million in July of 2018 from a USD 1531 million a year earlier and compared with market expectations of a USD 250 million shortfall. Imports jumped 17.6 percent and exports rose at a slower 14.2 percent.

Year-on-year, imports jumped 17.6 percent to USD 39,610 million in July of 2018. Non-oil purchases increased 13.6 percent to USD 34,696 million, driven by higher purchases of intermediate goods (16.5 percent); capital goods (23.5 percent) and consumer goods (19.7 percent). Oil imports surged 56.8 percent to USD 4,914 million.

Exports advanced at a slower 14.2 percent to USD 36,721 million, with non-oil sales, which accounted for around 93 percent of total exports, rising 12.9 percent to USD 34,117 million. Shipments increased for manufactured products (13.1 percent), especially steel products (38 percent); automotive products (16.4 percent); food, beverages and tobacco (14.8 percent); electrical and electronic equipment and appliances (9.7 percent) and machinery and special equipment for diverse industries (9.4 percent). Meantime, sales of agricultural goods went up (4.0 percent), due to rises in sales of fish, crustaceans and mollusks (56.2 percent); fruits and edible fruits (48 percent); pepper (24.6 percent); cattle (21.4 percent) and tomato (18.7 percent). In addition, shipments were up for mining products (19.9 percent).

Oil exports grew 34.2 percent to USD 2,604 million in July 2018. Mexico exported 1,156 million barrels a day, below the 1,255 million recorded in the corresponding month of 2017. Crude oil prices in turn were up to USD 66.26 a barrel, USD 1.66 million more than in July of 2017.

Non-oil dispatches to the US, which represented more than 80 percent of total sales, went up 12.8 percent, mainly due to exports of autos (17.1 percent) and other products (10.8 percent). Exports to the rest of the world grew at a faster 13.3 percent, boosted by sales of other products (13.4 percent) and autos (13.0 percent).

On a seasonally adjusted monthly basis, the trade deficit narrowed to USD 1,692 million from USD 1,809 million, as exports increased 0.13 percent to USD 36,860 million while imports dropped 0.18 percent to USD 38,552 million.


Friday August 24 2018
Mexico Annual GDP Growth Revised Down to 2.6% in Q2
INEGI | Stefanie Moya | stefanie.moya@tradingeconomics.com

The Mexican economy expanded 2.6 percent year-on-year in the second quarter of 2018, below a preliminary figure of 2.7 percent and following an upwardly revised 1.4 percent growth in the previous quarter. It was the strongest growth rate since the first quarter of 2017, driven by services and industrial sector.

The services sector advanced 3.3 percent, down from a 3.4 percent in the preliminary estimate and higher than a 2.1 percent expansion in the prior period. Faster growth was recorded in wholesale trade (3.6 percent compared to 2.4 percent in Q1); retail trade (3.6 percent compared to 3.2 percent); real estate activities (2.3 percent compared to 1.2 percent); financial services and insurance (4.9 percent compared to 4.4 percent); information and communication (7.6 percent compared to 3.0 percent) and transportation (3.7 percent compared to 2.8 percent). Also, output rebounded for business services (1.4 percent compared to -3.2 percent) and education (1.8 percent compared to -0.8 percent). In contrast, production fell further for cultural and sports activities (-1.2 percent compared to -0.1 percent) and growth slowed for social assitance (2.3 percent compared to 3.0 percent).

Industrial activity rebounded to 1.3 percent from a 0.8 percent contraction in the first quarter of the year and below a 1.4 percent expansion in the preliminary figure. Manufactury sector advanced 3.3 percent, after shrinking 0.2 percent in the previous period. Additionally, output rose faster for construction (2.5 percent compared to 1.5 percent) and utilities (1.9 percent compared to 0.8 percent). Meanwhile, mining contracted 6.1 percent, the same pace as in the prior quarter.

The agricultural sector grew 1.8 percent, in line with the preliminary estimate and well below a 5.4 percent expansion in the prior period. It was the weakest growth in the agricultural sector since the first quarter of 2016.

On a quarterly basis, the economy shrank 0.2 percent, more than a preliminary estimate of a 0.1 percent contraction and after expanding 1.0 percent in the first quarter.


Friday August 24 2018
Mexico GDP Contracts More than Expected in Q2
INEGI | Luisa Carvalho | luisa.carvalho@tradingeconomics.com

The Mexican gross domestic product declined 0.2 percent on quarter in the three months to June of 2018, up from a preliminary estimate of a 0.1 percent contraction and compared to a downwardly revised 1.0 percent growth in the first quarter. It was the worst contraction since the second quarter of 2013 (-0.7 percent), as both the primary sector and industry fell and services slowed further.

The industrial sector shrank 0.3 percent, matching the preliminary estimate and compared to a downwardly revised 0.8 percent rise in the first quarter. The construction sector slumped (-1.7 percent vs 2.2 percent in Q1) and mining and quarrying continued to decrease (-0.2 percent vs -0.6 percent). Meantime, output growth slowed sharply for manufacturing (0.2 percent vs 0.7 percent) and utilities (0.3 percent vs 1.2 pecrent). Also, the primary sector declined 2.1 percent, as initially estimates showed, contrasting with a downwardly revised 0.6 percent expansion in the previous quarter. 

In addition, the services sector grew only 0.2 percent, below a preliminary reading of 0.3 percent and well below a downwardly revised 1.0 percent increase in the first quarter.

Year-on-year, the Mexican economy advanced 2.6 percent, the most since the first quarter of 2017, missing a preliminary figure of 2.7 percent but above a 1.4 percent expansion in the previous period.