Corporate confidence declines in Mexico’s manufacturing sector (Forbes)

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(FORBES).- Business confidence falls in manufacturing, construction and commerce in May 2024.

Only business confidence in private non-financial services registered a higher level, compared to what it had a month ago
In May 2024, the Business Confidence Index (ICE) in manufacturing, construction and commerce registered falls, compared to the previous month, the only sector that showed favorable behavior was non-financial private services, the Institute reported. National Statistics and Geography (Inegi).

Based on seasonally adjusted figures, in May 2024, the ICE of manufacturing industries was 53.7 points, 0.4 less than last April; However, with this data, the indicator is, for 36 consecutive months, above the threshold of 50 points, a level that separates expansion from contraction.

The Inegi pointed out that in manufacturing, four of the five components that make up business confidence registered falls, the most pronounced was observed in the item that measures the opinion of businessmen regarding their evaluation of the country’s current economic conditions, compared to those that were a year ago.

Meanwhile, the construction ICE was 50.7 points in May 2024: it decreased 2.1 points in its monthly comparison, but with this data, the indicator remains above the 50-point threshold for the third continuous month.

In construction, four of the five components recorded falls, the most pronounced being observed in the perception of the country’s future economic situation.

Last May, the ICE of trade decreased 0.6 points compared to the previous month and stood at 53.6 points, although the indicator remains, for 38 consecutive months, above the threshold of 50 points.

In commerce, three of the five items were negative, the one that registered the highest monthly drop was the one related to the perception of whether the current moment is the right time to make investments.

In May of this year, the ICE of Non-financial Private Services increased 0.3 points compared to the immediately previous month and stood at 56.2 points. With this data, the indicator was placed, for 15 consecutive months, above the 50-point threshold.

In non-financial private services, three of the five subindices registered increases compared to the previous month, the most optimistic evaluation was in the perception of whether the current moment is the right one to make investments.

In the fifth month of 2024 and in its annual comparison, the ICE recorded the following behavior: that of manufacturing industries increased 0.4 points with figures adjusted for seasonality, but that of non-financial private services fell 0.7 points; that of commerce, 2.4 points, and that of Construction, 2.7 points.

With original figures (without seasonal adjustment), the Global Indicator of Business Confidence Opinion (IGOEC), which is the weighted average of the indicators of the four sectors that comprise it, registered a reading of 54.7 points in May 2024 and represented a decrease of one point in relation to the same month of 2023.

Source: FORBES

Monterrey Daily Post