Mexico City. Industrial production in August fell 0.5 percent compared to July, data that was driven by the negative dynamism of construction and which ended an upward streak of three consecutive months, the National Institute of Statistics and Geography (Inegi) reported this Friday.
According to the Monthly Indicator of Industrial Activity (IMAI), in the eighth month of 2024, the secondary sector fell 0.3 percent compared to the same period last year, a behavior that was also explained by the weak dynamism of construction. .
After observing an improvement in three consecutive months, industrial production returned to negative territory mainly because construction, which until a few months ago was positioned as the country’s economic engine due to the boost provided by projects such as the Mayan Train, fell 3.7 in August. percent compared to the previous month. This decrease was the largest since September of last year.
This dynamism was explained by the 4.0 percent decline in construction, while civil engineering decreased 0.5 percent.
However, the other three components showed positive behavior. The generation, transmission, distribution and marketing of electrical energy, water supply and natural gas through pipelines to the final consumer reported a monthly growth of 1.4 percent in August.
Mining, a branch that reported volatility in related services, grew 0.1 percent compared to the eighth month of the year, while manufacturing industries advanced 0.3 percent monthly.
The 0.3 percent annual decline in industrial activity was driven by the decline in construction, which was 4.1 percent, followed by the 1.3 percent drop in mining.
However, the generation, transmission, distribution and marketing of electrical energy, supply of water and natural gas through pipelines to the final consumer observed a growth of 2.0 percent in its annual variation, while manufacturing advanced 0.7 percent compared to August. of 2023.
With the annual variation in August, the IMAI accumulated 5 months below 1.0 percent annual growth, which accentuated the downward trend that has been observed since October 2023.
With original figures, the country’s industrial activity fell 0.9 percent in August compared to the same month last year, while in the accumulated 2024, the production of tertiary activities saw an increase of 1.2 percent annually.
The manufacturing of petroleum and coal products is the branch that saw the highest growth in the first eight months of the year, which was 11.4 percent. In contrast, the tanning and finishing of leather and skin, and manufacturing of leather, skin and substitute materials products observed a decrease of 15.0 percent compared to January-August of last year.
Monex analysts considered that industrial activity increases signs of weakness, given the surprising decline in the construction component and the marked slack in manufacturing.
“The industrial component maintains certain challenges in its environment, so slight fluctuations will remain in said indicator,” they noted.
They pointed out that the effect of the relevant announcements from the government of President Claudia Sheinbaum Pardo needs to be observed to give continuity to the flagship projects, as this can boost construction.
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