Mexico: Economic activity contracts at sharpest pace since September 2021 in November
The monthly indicator for economic activity (IGAE) declined 0.5% in month-on-month seasonally adjusted terms in November, which followed October’s 0.1% decrease. November’s figure marked the worst reading since September 2021 and was well below market expectations of a 0.2% drop. November’s deterioration was primarily driven by contractions in the industrial and primary sectors. However, the services sector bounced back.
On an annual basis, economic activity rose at a more moderate pace of 2.3% in November (October: +4.4% yoy), the worst result since April. Moreover, the trend pointed down, with the annual average growth of economic activity coming in at an over-one-year low of 3.4% in November, down from October’s 3.6% reading.