Mexico’s manufacturing PMI in April
According to a report by Markit Economics, Mexico’s (EWW) manufacturing activity witnessed a weaker rise in April than in March. Its manufacturing PMI was 51.6 in April compared to 52.4 in March. It didn’t meet the market expectation of 52.
Mexico’s manufacturing PMI in April was due to the following factors:
- Production output and volume rose at a weaker pace in April than in March.
- Both new orders and export orders rose more slowly in April than in March.
- Employment in the manufacturing sector rose significantly in April.
After President Trump relaxed his import tariffs on steel and aluminum, Mexico saw some improvement in economic activity. Since Mexico is an important steel exporter to the United States, the first announcement of the imposition of import duties on steel and aluminum had a significant effect. Manufacturers expected the tariffs to broadly affect Mexico’s exports.
However, now we’re seeing some improvement in Mexico’s economic activity since the tariff concern has abated.
ETFs in April
The iShares MSCI Mexico Capped ETF (EWW), which tracks the Mexican economy, remained flat in April. However, the Global X FTSE Southeast Asia ETF (ASEA), which tracks the performance of Southeast Asia, rose 0.85% that month.
In the next part of this series, we’ll analyze the performance of Russia’s manufacturing PMI in April.