Industrial production in Mexico increased 1.0 percent year-on-year in October 2018, easing from a 1.8 percent rise in the prior month and missing market expectations of a 1.6 percent gain. Output continued to advance for utilities (4.8 percent vs 4.0 percent in September), manufacturing (2.5 percent vs 2.4 percent) and it rebounded in construction (1.4 percent vs -0.5 percent). Conversely, production declined sharply in mining & quarrying (-5.6 percent vs 2.7 percent), mainly dragged down by a 7.1 percent fall in extraction of oil & gas. Considering the January to October period of 2018, industrial activity went up 0.6 percent over a year ago. On a seasonally adjusted monthly basis, industrial production fell 1.6 percent, following an upwardly revised 1.3 percent increase in the previous month. Industrial Production in Mexico averaged 1.78 percent from 1980 until 2018, reaching an all time high of 23.82 percent in October of 1996 and a record low of -17.50 percent in October of 1995.
Industrial Production in Mexico is expected to be -0.30 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Industrial Production in Mexico to stand at -1.20 in 12 months time. In the long-term, the Mexico Industrial Production is projected to trend around 1.40 percent in 2020, according to our econometric models.