Mexico’s factories contract for 26th straight month, inflation near four-year high

Mexico’s manufacturing sector contracted for the 26th month in a row in April, as factories responded to shrinking demand with a further downward adjustment to output and input costs surged, a survey showed Monday.

The seasonally adjusted S&P Global Mexico Manufacturing Purchasing Managers’ Index rose to 49.3 in April, up from 49.2 in March, though still below the 50 threshold that separates growth from contraction.

The slight uptick in the PMI was propelled by an upturn in employment, while output, new orders and stocks of purchases contracted, the survey said.

The PMI has stayed under the 50-mark since March 2020, falling to a historic low that April.

“The renewed increases in employment and exports were encouraging signs,” said Pollyanna De Lima, economics associate director at S&P Global, who added that firms “are longing to see a rebound in demand.”

Companies polled in the survey said lower demand and “acute” price pressures restricted sales in the domestic market, while exports grew for the first time since COVID-19 hit.

“The rate of inflation continued to run close to record highs and translated into the steepest rise in selling charges in close to four years,” said De Lima.

Business confidence rebounded and the overall level of positive sentiment reached the second-highest level in over 3-1/2 years, with survey participants citing expectations of an economic recovery, improvements in supply chains, projects pending approvals, new client wins and greater tourism.

Despite renewed hopes, the manufacturing sector in Mexico continues to see “underlying fragilities,” De Lima said.

  • United States issues alert for insecurity in Puerto Vallarta After the confrontation that occurred last Friday in Puerto Vallarta between criminals and elements of the Mexican Army that led to the death of “El Chopa”, indicated as being involved in the murder of the former governor of Jalisco, Aristóteles Sandoval, the United States Consulate in Guadalajara issued a security alert to its citizens. In…
  • Video appears to show Debanhi Escobar having a confrontation with a man the night of her death The investigation surrounding the case of Debanhi Escobar, a young woman who disappeared and later found dead inside a cistern at the Nueva Castilla motel, is still in the eye of the hurricane due to the latest report from the Attorney General of the State of Nuevo León, Gustavo Adolfo Guerrero. Journalist Azucena Uresti recently…
  • Why do people love vacationing in Puerto Vallarta? The natural beauties and its excellent infrastructure make Puerto Vallarta one of the most important tourist destinations in the country, but if we add to this the kindness and hospitality of its people and the tranquility that it offers its visitors, they place it in a very exclusive place, said the director of Tourism of…
  • Two military female officers kidnapped by CJNG in Puerto Vallarta released alive Two women with the Secretariat of National Defense (Sedena) who had been kidnapped by a commando from the Jalisco Nueva Generación Cartel (CJNG) in Puerto Vallarta were released alive. The agents were located in good health a few hours after the Army deployed an operation in the city to locate them. The discovery was made…
  • Two female military officers are victims of kidnapping by CJNG in Puerto Vallarta Two women members of the Secretariat of National Defense ( Sedena ), were kidnapped in Puerto Vallarta by an armed group, led by Juan Carlos Valencia González alias “el 03”, one of the main leaders of the Jalisco New Generation Cartel (CJNG ) in addition to being the unrecognized son of Nemesio Oseguera Cervantes alias…

Source link

Leave a Reply

Your email address will not be published.