Mexico’s manufacturing PMI in October
In October 2017, Mexico’s (EWW) manufacturing activity saw a sharp fall overall. Its manufacturing PMI (purchasing managers’ index) stood at 49.2 in October as compared to 52.8 in September, according to the IHS Markit report. The PMI figure was far below the preliminary market expectation of 52.
The weaker manufacturing PMI for Mexico in October was mainly due to the following factors:
- Production output and volume fell in October.
- The overall conditions in the manufacturing sector and factory output fell during the month.
- New orders and export orders all fell during the month.
- Employment in the manufacturing sector also fell in the same month.
The country’s demand outlook remained flat in that month as the recent earthquake hampered the consumer demand. Manufacturers remained less optimistic about the country’s outlook as several natural disasters hampered economic growth.
The iShares MSCI Mexico Capped (EWW), which tracks the performance of Mexico, fell 7.4% in October 2017. Over the past year, it has risen 18.6%.
In the next part of this series, we’ll look at the indicators that investors should watch this week.