Mexico’s economy showed signs of recovery during August & September
MEXICO – Mexican economy showed signs of improvement during the months of August and September, according to data from the System of Cyclical Indicators, prepared by the National Institute of Statistics and Geography (INEGI).
Both the Coincident Indicator –which reflects the general state of the economy– and the Leading Indicator –which seeks to indicate the turning points in advance – once again showed increases in the reference months.
“Taking together the reading of the two indicators of the Cyclical Indicators System, they show that the Mexican economy currently continues to grow considerably below its long-term trend, but that it has been gradually closing this difference,” Julio Santaella, president of the INEGI posted on Twitter.
In August, the Coincident Indicator remained below its long-term trend, reporting a value of 96 points, despite an increase of 0.54 points compared to the previous month.
“It is important to mention that the Coincident Indicator reflects the significant impact caused by the COVID-19 pandemic; however, the magnitude of its fall or its recovery should not be considered as a measure of the contraction or recovery of economic activity, but rather as an indication of the strength it shows presents,” the INEGI stated.
The increase of the Coincident Indicator was due to the fact that five of its six components registered growth in August, where the Industrial Activity Indicator registered the greatest improvement with 1.59 points.
The Leading Indicator, for its part, stood at 100.1 points in September, just above its long-term trend, registering a 0.31 points growth; four of the six components of the Leading Indicator showed growth in September.
Source: El Economista