Mexico Manufacturing PMI in June
According to a Markit Economics report, Mexico’s (EWW) manufacturing activity rose significantly in June. Its Manufacturing PMI was 52.1 in June compared to 51 in May. It beat the market expectation of 52.
The Mexico Manufacturing PMI in June was due to the following factors:
- Production output and volume rose at a faster pace in June than in May.
- New orders and export orders rose in June.
- Employment in the manufacturing sector rose more sharply in June.
Improving domestic and international demands are helping Mexico’s manufacturing industry. At the 2018 Delivering Alpha Conference, top White House economic advisor Larry Kudlow said, “I can report good progress with Mexico.” The statement suggests that the United States is making good progress with Mexico over trade relations after the Trump administration announced the imposition of import tariffs on Mexico. Trade negotiations between the United States and Mexico are ongoing.
ETF performances in June
The iShares MSCI Mexico Capped ETF (EWW), which tracks the Mexican economy, rose 5.5% in June. In comparison, the Global X FTSE Southeast Asia ETF (ASEA), which tracks the performance of Southeast Asia, fell 8.4% that month. The broader market S&P 500 Index (SPY) fell 0.12%.
In the next part of this series, we’ll analyze the performance of the Russia Manufacturing PMI in June.