Mexico's economy shows solid growth, the Mexican Institute of Finance Executives (IMEF) highlighted today Monday when interpreting its leading indicators.

The IMEF Manufacturing Indicator for September decreased 0.7 points compared to the month of August, standing at 51.5 units, so, although the pace of expansion slowed, the manufacturing sector continues to expand.

The IMEF Indicator varies in an interval from 0 to 100 points and the level of 50 points represents the threshold between an expansion (greater than 50) and a contraction (less than 50) of economic activity.

Check here: Guadalajara Market projects an increase in the supply of industrial properties

On the other hand, the IMEF Non-Manufacturing Indicator increased 0.9 points, closing at 53.3 units. The services and commerce sector continues in an expansion zone, thus accumulating 20 consecutive months in this area.

Thus, Mexico's economy, according to the Indicators, closes the third quarter of this year in expansion, consolidating the momentum registered in the first two months of the third quarter of 2023.

“The services and commerce sectors continue to grow persistently, while the activity of the manufacturing sector confirms that it is in a constructive cycle,” added the IMEF in its monthly report.

The IMEF Indicator data for the third quarter of 2023 anticipate a good performance of the activity. GDP has expanded at an annual rate of 3.7% during the first six months of the year and advance data for this third quarter suggest that this growth rate is maintained.

During the first half of this year, the growth of economic activity exceeded expectations, similar to what happened in the previous two years.

Of interest: Solili Industrial Report 3Q 2023, limited supply limits growth in industrial demand in Mexico

The strength of the labor market has been reflected in a robust behavior of domestic consumption. This has also been supported by the growth of credit in the banking system, as well as the expansion of remittances.

The other component of domestic private demand, investment, in the first half of 2023 grew at its highest rate so far this century (increasing 18% compared to the first half of 2022), driven by an increase in acquisitions of machinery and equipment by companies in the country.

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Original note