Mexico City. The Mexican economy stagnated its growth in the first half of the year and towards the end it will maintain weak behavior, suggests the System of Composite Indicators: coincident and leading, calculated by Inegi.
The National Institute of Statistics and Geography (Inegi) specified that the leading indicator, which suggests the behavior of the economy in the short term, was positioned above its long-term trend, presenting a value of 100.2 points in August, which represented a drop of 0.14 points compared to July, its fourth consecutive drop.
The fall of said indicator was a consequence of the decrease in three of four of its six components, among which the behavior of the Price and Quotation Index (IPC) stands out, which represents a sample of the shares listed on the Mexican Stock Exchange ( 0.13 units); the business confidence indicator, the right time to invest (0.17 percent); the employment trend in manufacturing (0.02 points).
The slowdown of the national economy also comes hand in hand with the effects of the interest rate, with a decrease of 0.12 points.
However, the advance of the US stock index S&P 500 (0.10 points) and the exchange rate of 0.44 points suggest a moderate behavior of the economy in the coming months.
The Mexican economy stagnated its growth in the first half of the year and towards the end it will maintain weak behavior, suggests the Composite Indicator System. Image taken from @INEGI_INFORMA
For its part, the coincident indicator, which reflects the behavior of the current economy, was located above its long-term trend, registering a value of 100.1 points in July and did not present monthly variation, 12 readings of consecutive falls, which showed an exhaustion of the economy at the end of 2023 and during 2024.
With the new information, the coincident indicator maintained the contraction trend reported in recent months.
The result of the coincidence was due to the negative performance of two of the six components that comprise it. The positive performance of the global indicator of economic activity (Igae), showing a growth of 0.07 points; Industrial activity rose 0.06 points and the urban unemployment rate advanced 0.11 points and total imports (0.05 points) kept the economy in slow growth.
The insured permanent workers in the IMSS, with a drop of 0.02 points; supply income (0.09 points); and total imports (0.06 points) supported the current weakness of the national economy.
Thus, the falls in the latest readings of the coincident and leading indicators of the Cyclical Indicator System affirm the slowdown of the Mexican economy.
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