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Mexico’s Manufacturing Activity Rises Strongly in January 2018

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Mexico’s manufacturing activity in January 2018

According to Markit Economics, Mexico’s (EWW) manufacturing PMI (purchasing managers’ index) rose strongly between December 2017 and January 2018, to 52.6 from 51.7. The PMI figure beat the market expectation of 52.5.

Mexico’s manufacturing PMI rose in January 2018 due to the following factors:

  • production output and volume rose at a stronger rate
  • both new and export orders rose at a faster rate
  • employment in the manufacturing sector improved at a faster rate

In the past few months, Mexico’s manufacturing PMI has fluctuated significantly, with major earthquakes hampering economic activity. However, January’s performance was mainly driven by stronger client orders and improved domestic demand. Consumer buying activity also rose.

ETF performance

The iShares MSCI Mexico Capped ETF (EWW), which tracks the Mexican economy, rose 7.7% in January 2018. The Global X FTSE Southeast Asia ETF (ASEA), which tracks the performance of Southeast Asia, rose 5.2%. In the next part of this series, we’ll analyze Russia’s manufacturing PMI in January 2018.

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