Mexico: Manufacturing PMIs fall deeper into contractionary territory in August
Operating conditions in the manufacturing sector continued to deteriorate in August, and to a greater extent than in July. The seasonally-adjusted manufacturing Purchasing Managers’ Index (PMI) produced by the Mexican Institute of Financial Executives (IMEF) fell from 48.9 points in July to 47.4 points in August, the worst print since April 2017. As a result, the index moved further below the 50.0-point threshold, signaling a contraction in the manufacturing sector. Notably, production fell, returning to contractionary territory and largely driving the indicator’s decline in the month.
Similarly, the manufacturing PMI produced by IHS Markit slipped from 49.8 in July to 49.0 in August, marking the lowest reading in the survey’s history and landing further below the 50.0-point threshold, indicating a contraction in manufacturing activity. New business fell at a sharp pace amid frail demand, primarily from the domestic market, and challenges in the automobile industry, while output contracted for the third month running—both largely driving August’s overall downturn.