Stock Groups

Mexico manufacturing activity index tumbles to 10-month low -Breaking

by Mike Robinson

[ad_1]

© Reuters. FILE PHOTO: An worker works at an LED TV meeting line at a manufacturing unit that exports to the U.S. in Ciudad Juarez, Mexico, September 21, 2016. Image taken September 21, 2016. REUTERS/Jose Luis Gonzalez

MEXICO CITY (Reuters) – Mexico’s manufacturing sector shrank at its quickest tempo in 10 months in January, as rising coronavirus infections, ongoing provide bottlenecks and excessive ranges of inflation battered industrial exercise, a survey confirmed on Tuesday.

The IHS Markit Mexico Manufacturing Buying Managers’Index tumbled to 46.1 in January from 49.4 in December, taking it nicely beneath the 50 threshold that separates progress from contraction.

The weakest studying within the index since final March is a setback for Mexico after a marked slowdown within the financial system on the finish of 2021 left it battling recession.

The index has remained beneath 50 each month since March 2020, and reached a trough of 35.0 in April 2020 in the course of the preliminary lockdown section of the coronavirus pandemic.

“The brand new wave of COVID-19 contamination exacerbated the already powerful challenges dealing with Mexican producers. Firms have struggled to see a month-to-month enhance in new orders for some time, and the contraction gained velocity in January,” stated Pollyanna De Lima, Economics Affiliate Director at IHS Markit.

Gross sales and manufacturing contracted, and labor shortages intensified as workers absences elevated because of rising ranges of an infection amongst employees, the survey stated.

Enter prices rose on the second-fastest tempo in shut to 5 years, it added.

Disclaimer: Fusion Media wish to remind you that the information contained on this web site is just not essentially real-time nor correct. All CFDs (shares, indexes, futures) and Foreign exchange costs usually are not supplied by exchanges however fairly by market makers, and so costs might not be correct and should differ from the precise market worth, which means costs are indicative and never acceptable for buying and selling functions. Subsequently Fusion Media doesn`t bear any accountability for any buying and selling losses you may incur on account of utilizing this knowledge.

Fusion Media or anybody concerned with Fusion Media is not going to settle for any legal responsibility for loss or harm on account of reliance on the data together with knowledge, quotes, charts and purchase/promote alerts contained inside this web site. Please be totally knowledgeable relating to the dangers and prices related to buying and selling the monetary markets, it is likely one of the riskiest funding kinds attainable.

[ad_2]