Glimmers of Strength

MEXICO - Report 22 Dec 2014 by Mauricio Gonzalez, Guillermo Valdes, Esteban Manteca and Ernesto Cervera
Executive Summary The Mexican economy has been showing signs of firming: In November officials reported that GDP had rebounded to its “natural rate” of growth, of nearly 3%. But there are surprise headwinds, too. Industrial production in October was up 2.1% y/y, an expansion driven by manufacturing and construction. Factory output rose 3.9%, and construction activity also kept accelerating, with output up 5.4%. Gross fixed investment was up 5.7% in September, building on increases of 4% in August and 3.1% in July. The internal market is still sluggish, but data is mixed. The National Associ...

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