Mexico Manufacturing Continues to Strengthen in September
The IHS Markit Mexico Manufacturing Purchasing Managers' Index (PMI) in September was 42.1, a six-month high and an increase of 0.8 points from August. Conditions, while strengthening for the last five months, were still softer than the pre-COVID period. Softer conditions were attributed to a seven-month decline in new work due to clients only purchasing critical items and lower orders from other countries. Looking to the future, manufacturers showed renewed optimism towards output and less contractions in orders.
The PMI index is composed of five sub-indices tracking changes in new orders, output, employment, suppliers' delivery times and stocks of raw materials. A reading above 50 indicates growth. See IHS Markit