Mexico Manufacturing PMI2012-2021 Data | 2022-2023 Forecast | Calendar | Historical

The IHS Markit Mexico Manufacturing PMI rose to 48.4 in April of 2021 from 45.6 in the previous month. The latest reading pointed to the smallest contraction in factory activity in the current 14-month sequence of declines. There were notably softer reductions in new orders, output, exports, employment and stocks as demand improved. Still, supply-chain constraints, raw material shortages and the Suez Canal blockage underpinned a further increase in delivery times and the sharpest rise in input costs since July 2018. Meanwhile, firms absorbed the additional cost burden and reduced their selling prices amid efforts to stimulate demand. Finally, business sentiment reached a two-month high, supported by hopes that COVID-19 restrictions will be lifted soon.

The IHS Markit Mexico Manufacturing PMI rose to 45.6 in March of 2021 from 44.2 in February, pointing to the smallest contraction in the manufacturing sector in a year. Factory orders and production decreased for a thirteenth straight month but the rates of contraction softened. Also, purchasing activity and employment continued to fall although less, on reports of subdued demand conditions, downsizing, shutdowns and the nonrenewal of temporary contracts. On the price front, input cost inflation soared to a 28-month high, amid unfavorable exchange rates, material shortages and supplier price adjustments. On the other hand, output charges decreased for the seventeenth month in a row due to ongoing efforts to attract new business. Finally, business optimism fell from February's one-year high, with the level of positive sentiment well below the series average, amid concerns that COVID-19 restrictions may linger and that the economic recovery will be slow.

The IHS Markit Mexico Manufacturing PMI rose to 44.2 in February of 2021 from 43 in January but still pointed to the 12th straight contraction in factory activity which was among the steepest on record. Output, new orders, export orders and purchasing activity fell sharply due to the COVID-19 restrictions. Employment also decreased again with panellists linking job shedding to dismissals, resignations and business closures. Meantime, outstanding business fell for the eleventh month in a row and at a sharp pace, as the lack of new work encouraged manufacturers to focus on pending projects. On the price front, input prices rose sharply, amid higher prices for a range of materials including chemicals, foodstuff, metals, packaging, plastics and textiles. Still, competitive pressures and subdued demand encouraged firms to reduce their output charges again. Looking forward, sentiment towards growth prospects improved noticeably due to the vaccine roll-out.

The IHS Markit Mexico Manufacturing PMI rose to 43 in January of 2021 from 42.4 in December but still pointed to the 11th straight contraction in factory activity. New orders and production fell faster while the rates of decline in exports and employment eased somewhat. Firms often cited as the main reasons behind the weak performance the challenging conditions to the pandemic, weak demand, the cancellation of projects and business closures. Also, input buying decreased for the eleventh straight month but at a slower pace. On the price front, the rate of cost inflation hit a three-month high, on account of higher prices of chemicals, energy, foodstuff, metals, packaging, plastics and textiles. However, companies lowered their charges again amid attempts to stimulate sales. Finally, business optimism was sustained although sentiment remained subdued by historical standards, with firms expecting clients' restocking efforts and vaccine roll-out to support growth in the coming year.