Mexico City. Gross fixed investment and household consumption of goods and services showed strength in February, as they grew 0.7 and 0.6 percent at a monthly rate, respectively, reported the National Institute of Statistics and Geography.
The Monthly Indicator of Gross Fixed Capital Formation – which shows companies’ spending on machinery, transportation and construction equipment – recovered in the second month of the year, after reporting a 0.2 percent drop in January.
In its monthly variation, gross fixed investment advanced 0.7 percent compared to the first month of 2024 due to a greater acquisition of machinery and equipment, a component that grew 2.6 percent monthly.
In particular, the purchase of imported machinery and transportation equipment grew 4.5 percent compared to January, while the national purchase advanced 2 percent in the same period.
Construction suffered a 1.3 percent monthly decline, due to a 5.6 percent drop in the residential segment.
However, gross fixed investment grew 10.7 percent compared to February 2023, a dynamism that is explained by the boost in construction, which saw a growth of 14.2 percent.
The purchase of machinery and transportation equipment by companies advanced 6.7 percent, although the imported subcomponent stood out, which registered an increase of 11.8 percent.
For its part, the Monthly Indicator of Private Consumption for the second month of 2024 showed an advance of 0.6 percent compared to January, due to a greater purchase of imported goods by Mexican households.
The acquisition of this type of products grew 2.6 percent in February compared to the previous period, while the purchase of national goods and services had an increase of 0.6 percent.
Annual growth accelerated, because while in January it was 1.8 percent, in February it was 3.9 percent, a behavior that is explained by a greater purchase of imported goods, subcomponents that observed an annual growth of 24.8 percent.
The consumption of national goods and services advanced 0.6 percent compared to the second month of 2023, due to the 1.4 percent decline in goods made in Mexico.
Monex analysts recognized that the data for both indicators are positive. In particular, they foresee that consumption will continue with this inertia due to the appreciation of the exchange rate, which drives the purchase of imported goods. On the investment side, the volatile behavior of construction in the residential sector stood out, while the non-residential sector maintains a positive trajectory favored by the federal government’s flagship projects.
Intercam commented that according to the timely GDP figures, both components of aggregate demand should have continued growing during the third month of the year.
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– 2024-05-12 04:31:50
