What Does Mexico’s Manufacturing PMI Indicate?
According to a report by Markit Economics, Mexico’s (EWW) manufacturing activity showed a slightly weaker improvement in December as compared to November 2017.
Jan. 26 2018, Updated 9:35 a.m. ET
Mexico’s manufacturing PMI in December 2017
According to a report provided by Markit Economics, Mexico’s (EWW) manufacturing activity showed a slightly weaker improvement in December as compared to November 2017. Its manufacturing PMI (purchasing managers’ index) was at 51.7 in December as compared to 52.4 in November 2017, according to IHS Markit. The PMI figure beat the market expectation of 51.5.
Mexico’s manufacturing PMI in December was affected by the following factors:
- Production output and volume rose at a weaker pace in December 2017 as compared to November.
- Both the new orders and export orders rose at a slower rate in December 2017.
- Employment in the manufacturing sector also rose at a slower rate in that month.
In October 2017, major earthquakes hampered the overall economic activity of Mexico, which hurt manufacturing activity and showed a contraction in the manufacturing sector. The manufacturing sector has been recovering from that contraction. The improvement in overseas (ACWI) (VT) (VTI) and domestic demand boosted manufacturing activity.
ETF performance in December
The iShares MSCI Mexico Capped ETF (EWW), which tracks the Mexican economy, fell 0.8% in December 2017. In the next part of this series, we’ll analyze the performance of Indonesia’s manufacturing PMI in December 2017.