Archive

Mexico Economic Activity Growth 3.7% y-o-y (consensus 3.4%) in Aug-23

- Mexico's economic activity growth increased to 3.7% y-o-y in August 2023, the highest rate since June 2023 and beyond expectations of 3.4%.
- The month-on-month growth rate for August 2023 was 0.4%, indicating a modest increase in economic activity.

Mexico CPI Inflation 4.45% y-o-y in Sep-23

- Mexico's CPI inflation in September 2023 reached a year-on-year growth rate of 4.45%, the lowest since February 2021, in line with expectations.
- The figure is 2.00 percentage points below the one-year average, indicating a more subdued inflationary environment in Mexico.

Mexico PMI Manufacturing 49.8 in Sep-23

- Mexico's PMI Manufacturing contracted in September 2023, reaching its lowest level since January 2023.
- The reading of 49.8 indicates a slight decline in manufacturing activity and falls below the one-year average by 1.02 points.

Banco de México: Sep-23

• The unsurprising decision to maintain the overnight interbank interest rate at 11.25% by Banco de México is aligned with the prevailing economic resilience in Mexico and persistent high levels of inflation, highlighting a balanced and watchful approach to monetary policy amid global uncertainties.
• Inflation is projected to converge more gradually to the 3% target by Q2 2025 due to enduring core inflation and potential cost-related pressures, underscoring the central bank’s commitment to monitoring and adapting monetary policy to maintain stable inflation.
• The synchronized stance of major global central banks in retaining reference rates signifies a consistent response to the ongoing economic challenges and uncertainties, emphasizing the importance of harmonized policy adjustments to manage inflationary pressures and global economic expansion prospects.