Mexico Manufacturing PMI at 47.1 in August, Says IHS Markit
PMI™ data showed that the Mexican manufacturing industry was in the red in August, as has been the case for one-and-a-half years. Moreover, a quicker contraction in new work intakes resulted in sharper declines in production, employment, input buying and stocks. Supply-chain constraints continued to exert upward pressure on input prices, but companies absorbed the additional cost burdens and lowered their charges amid efforts to stimulate demand. Also, business confidence weakened due to growing concerns
surrounding COVID-19.
At 47.1 in August, the seasonally adjusted IHS Markit Mexico Manufacturing PMI™ slipped deeper into contraction territory, after moving closer to the stabilisation mark in July (49.6). The latest reading was consistent with a moderate deterioration in the health of the sector that was nonetheless the most pronounced since March.New orders decreased for the eighteenth month in a row halfway through the third quarter, and at the fastest pace since March.
Panellists blamed the contraction on the pandemic, business closures and subdued client demand. New export orders also fell further, and at the fastest rate in three months. Anecdotal evidence highlighted subdued demand from the US and the closure of other clients’ businesses worldwide as the main factors restricting international sales
