MEXICO CITY (Reuters – Mexico’s manufacturing sector fell for the 26th consecutive month in April as factories responded to declining demand. A further downturn in output was followed by an increase in input costs. Monday’s survey revealed that this trend continued.

The seasonally adjusted S&P Global (NYSE:) Mexico Manufacturing Purchasing Managers’ Index rose to 49.3 in April, up from 49.2 in March, though still below the 50 threshold that separates growth from contraction.

Survey results indicated that the PMI saw a slight rise in activity, and output, new orders, as well as stocks, contracted.

Since March 2020, the PMI was below 50. It fell to an all-time low in April.

“The renewed increases in employment and exports were encouraging signs,” said Pollyanna De Lima, economics associate director at S&P Global, who added that firms “are longing to see a rebound in demand.”

The survey found that the respondents to the poll said there was less demand for their products and more price pressures. However, exports increased for the first-time since COVID-19.

De Lima stated that “the rate of inflation continued its run near to record highs, translating into the steepest increase in selling costs in nearly four years.”

The overall positive mood in business rebounded. It was the second highest level since over 3 1/2 years. Survey participants mentioned expectations for an economic recovery and improvements in supply chain, projects pending approvals and new clients.

De Lima indicated that, despite the renewed hope of Mexico’s industrial sector, there are still “underlying fragilities” in Mexico.