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.




Friday August 25 2017
Mexico Jobless Rate Down to 3.4% in July
INEGI |Luisa Carvalho | luisa.carvalho@tradingeconomics.com

The unemployment rate in Mexico declined to 3.4 percent in July of 2017 from 4 percent a year earlier and matching market expectations. It is the lowest jobless rate for a July month since the series began in January of 2005. When adjusted for seasonality, the unemployment fell to 3.2 percent from 3.3 percent.

Compared to July of 2016, the jobless rate rate fell for both men (3.4 percent vs 3.9 percent) and women (3.4 percent vs 4.1 percent). Among unemployed people, 17.7 percent had not completed secondary education and 82.3 percent had a higher education.

Those underemployed accounted for 6.5 percent of total employed, lower than 8 percent a year earlier.

The participation rate edged down to 59.8 percent from 60.5 percent in July of 2016.




Tuesday August 22 2017
Mexico GDP Growth at 1-Year Low of 0.6% in Q2
INEGI | Joana Taborda | joana.taborda@tradingeconomics.com

The Mexican economy advanced 0.6 percent on quarter in the three months to June of 2017, in line with the preliminary reading but slowing slightly from a 0.7 percent rise in the previous quarter. The services sector was the main driver of growth while industrial production stalled and the primary sector shrank, final estimates showed.

The services sector increased 0.8 percent, in line with the preliminary reading and below 1 percent in the previous period. Industrial output was flat, compared to an earlier estimate of 0.1 percent and 0.2 percent in the previous quarter. The primary sector went down 1.9 percent (-2 percent in the first figure) and compared to 0.8 percent in the previous period. 

Year-on-year, the economy expanded an unadjusted 1.8 percent in the second quarter of the year, the lowest growth rate in three years. 




Tuesday August 22 2017
Mexico GDP Growth Weakest Since 2014
INEGI | Luisa Carvalho | luisa.carvalho@tradingeconomics.com

The Mexican economy advanced 1.8 percent year-on-year in the second quarter of 2017, in line with the first estimate but well below a 2.8 percent expansion reported in the previous period. It is the lowest growth rate since the second quarter of 2014, mainly due to a slowdown in output of services and agriculture while industrial sector shrank, final estimates showed. On a quarterly basis, the GDP grew 0.6 percent, in line with an earlier figure but slightly lower than a 0.7 percent increase in the first quarter of 2017.

The services sector rose 3.2 percent, matching preliminary estimate and easing from a 3.7 percent rise in the previous quarter. Activities slowed for: internal trade (2.6 percent vs 3.4 percent in Q1); transportation (3.6 percent vs 4.1 percent); business support services and waste management and remediation (3.1 percent vs 4.1 percent); professional, scientific and technical (3 percent vs 8 percent); corporate services (3.2 percent vs 5.3 percent) and real estate activities (1.8 percent vs 2.4 percent). Meantime, education tumbled (-0.5 percent vs 3.1 percent). Conversely, output expanded faster for restaurants and hotels (7.6 percent vs 0.5 percent); recreation and culture (5 percent vs 2.3 percent) and financial and insurance (9.9 percent vs 9.5 percent).

Industrial production tumbled 1.1, compared to a 1 percent fall in the previous release and a 0.5 percent expansion in the previous quarter. Production was dragged down by mining (-8.5 percent vs -11.6 percent); construction (-1.5 percent vs 1.5 percent) and utilities (-1.9 percent vs -0.5 percent). Meantime, the manufacturing sector rose at a slower pace (2 percent vs 5.2 percent).

The agricultural sector advanced 0.7 percent, in line with the first figure but below a 6.4 percent growth in the previous quarter.

On a quarterly basis, the economy advanced 0.6 percent, slightly below 0.7 percent in the previous period and in line with the preliminary estimate. Yet, it is the weakest expansion in one year.




Wednesday August 09 2017
Mexico Inflation Rate Highest Since 2008
INEGI | Luisa Carvalho | luisa.carvalho@tradingeconomics.com

Consumer prices in Mexico jumped 6.44 percent year-on-year in July of 2017, following a 6.31 percent rise in June and above market expectations of 6.37 percent. The inflation rate accelerated for the thirteenth consecutive month to hit the highest level since December of 2008, mainly driven by higher prices of food and energy. 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 climb for food, beverages and tobacco (7.25 percent vs 6.90 percent in June). Additional upward pressure came from: Housing and utilities (2.56 percent vs 2.57 percent); energy (13.07 percent vs 15.20 percent) and education (4.32 percent vs 4.37 percent).

On a monthly basis, consumer prices went up 0.38 percent compared to a 0.25 percent increase in the previous month.

The core index, which strips out some volatile food and energy prices, rose 0.27 percent during the month and 4.94 percent year-on-year.


Monday July 31 2017
Mexico Annual GDP Growth at 3-Year Low in Q2
Joana Taborda | joana.taborda@tradingeconomics.com

The Mexican economy advanced 1.8 percent year-on-year in the second quarter of 2017, well below a 2.8 percent rise in the previous period and compared to market expectations of a 1.6 percent rise. It is the lowest growth rate since the second quarter of 2014, due to a fall in industrial output, preliminary estimates showed.

The industrial sector shrank 1 percent and primary activities went up 0.7 percent. The services sector was the main driver of growth, rising by 3.2 percent. 

On a quarterly basis, the economy advanced 0.6 percent, slightly below 0.7 percent in the previous period but beating expectations of a 0.7 percent contraction.


Monday July 31 2017
Mexico GDP Unexpectedly Grows 0.6% In Q2
Joana Taborda | joana.taborda@tradingeconomics.com

The Mexican economy advanced 0.6 percent on quarter in the three months to June of 2017, slowing slightly from a 0.7 percent rise in the previous quarter but beating market expectations of a 0.7 percent contraction. The services sector was the main driver of growth while industrial production barely rose and the primary sector shrank, preliminary estimates showed.

The services sector increased 0.8 percent and industry edged up a meager 0.1 percent. On the other hand, the primary sector went down 2 percent. 

Year-on-year, the economy expanded an unadjusted 1.8 percent in the second quarter of the year, the lowest growth rate in three years. 


Thursday July 27 2017
Mexico Trade Balance Swings to Surplus in June
INEGI | Joana Ferreira | joana.ferreira@tradingeconomics.com

Mexico posted a trade surplus of USD 61.5 million in June 2017 compared with a USD 516.6 million trade deficit in the same month of the previous year and above market expectations of a USD 303 million gap. Exports jumped 11.5 percent from a year ago to USD 35.6 billion while imports increased at a slower 9.5 percent to USD 35.5 billion.

Exports went up 11.5 percent year-on-year to USD 35.61 billion in June, marking the eighth consecutive month of annual gain. Non-oil sales, which account for 95 percent of total exports, increased 11.5 percent and exports of oil grew 10.4 percent. Within non-oil exports, sales of manufactured products rose 11.3 percent, driven by exports of automotive products (17.8 percent). In addition, sales rose for agricultural and fisheries (11.1 percent), and mining products (26.8 percent).

Exports to the United States grew 11 percent, accounting for more than 80 percent of total non-oil shipments. Auto sales to the US rose 16 percent and exports of other products advanced 8.6 percent. Sales to the rest of the world increased 13.7 percent, with autos jumping 27.5 percent and other products rising 8.5 percent.

Imports advanced at a slower 9.5 percent to USD 35.55 billion, boosted by higher purchases of intermediate goods (10.8 percent) and consumption goods (11.7 percent). By contrast, imports of capital goods fell 2.2 percent.

In the first half of the year, the tarde deficit narrowed to USD 2.91 billion from USD 7.05 billion in the same period of 2016, as exports rose 10.4 percent to USD 197.53 billion while imports increased at a slower 7.8 percent to USD 200.44 billion.


Friday July 21 2017
Mexico Jobless Rate Below Expectations
INEGI | Joana Taborda | joana.taborda@tradingeconomics.com

The unemployment rate in Mexico fell to 3.3 percent in June of 2017 from 3.9 percent a year earlier and below market expectations of 3.5 percent. It is the lowest jobless rate for a June month since 2008. When adjusted for seasonality, the unemployment fell to 3.3 percent from 3.5 percent.

Compared to June of 2016, the jobless rate fell for both men (3.2 percent from 3.8 percent) and women (3.4 percent from 4.1 percent). Among unemployed people, 17.5 percent had not completed secondary education and 82.4 percent had a higher education.

Those underemployed accounted for 7.1 percent of total employed, lower than 7.7 percent a year earlier.

The participation rate edged up to 59.4 percent from 59.3 percent in June of 2016.