Alt+0 to show this section, Tab to navigate forward, Shift+Tab key to navigate backward, Enter to access link, and Esc to reset

Menu

01 Aug 2013

Manufacturing low for Mexico

Manufacturing low for Mexico

A number of companies in Mexico cited higher prices for raw materials as a reason for greater costs

Mexico’s manufacturing sector contracted for the first time since data collection began in April 2011, according to the HSBC Purchasing Managers’ Index™.

The headline figure was 49.7 in July, down from 51.3 in June, with new export orders falling for the third month in a row. This is the first time it has fallen below the 50 mark. A reading above 50 suggests expansion in the sector, while below 50 suggests decline, with the latest figures indicating that business conditions are deteriorating for Mexico’s manufacturers.

The recent increase in non-oil exports represents a glimmer of hope for the sector

Sergio Martin,
Chief Economist,
HSBC Mexico

Sergio Martin, Chief Economist, HSBC Mexico, said: “Since the series began, this is the first time in which the index lies below the 50-point break-even level. This suggests that manufacturing will keep on struggling to grow in 3Q 2013. However, the recent increase in non-oil exports represents a glimmer of hope for the sector.”

Manufacturing employment showed little change from June, with the majority of firms keeping their staff numbers unchanged. Firms reported greater input costs in July, with a number of companies citing higher raw material prices and unfavourable exchange rates. Manufacturers lowered selling prices for the fourth consecutive month in a bid to win new business.

The intellectual property rights to the HSBC Mexico Manufacturing PMI™ provided herein is owned by Markit Economics Limited. Any unauthorised use, including but not limited to copying, distributing, transmitting or otherwise of any data appearing is not permitted without Markit’s prior consent. Markit shall not have any liability, duty or obligation for or relating to the content or information (“data”) contained herein, any errors, inaccuracies, omissions or delays in the data, or for any actions taken in reliance thereon. In no event shall Markit be liable for any special, incidental, or consequential damages, arising out of the use of the data. Purchasing Managers' Index™ and PMI™ are trade marks of Markit Economics Limited, HSBC use the above marks under license. Markit and the Markit logo are registered trade marks of Markit Group Limited.

Related content

Chinese manufacturing cools

Chinese manufacturing cools

01 Aug 2013

China’s manufacturing sector slowed in July, according to the HSBC China…

Turkish decline as orders fall

Turkish decline as orders fall

01 Aug 2013

Turkey’s manufacturing sector has deteriorated for the first time in …