Industrial production decreased 0.3%, MoM, sa, in December

According to INEGI, Mexico's December industrial production expanded 2.0% YoY sa, equivalent to -0.3% MoM sa. In the original series industrial production grew 3.0 % annually. The annual growth of industrial production in December (2.0% YoY, sa) was mainly due to increase in construction (5.9% YoY, sa), manufactures (4.2% YoY, sa) and electricity, gas and water (1.9% YoY, sa); though mining accumulated nine consecutive months of fall, now -6.2% YoY, sa (see Figure 1). The result was below our forecast (BBVA Research: 2.7 % YoY, sa), which implies a weak economic activity for 2014. Surprisingly, the monthly drop in industrial production in December is explained by the reduced production in sub-sectors of manufacturing (-1.6% MoM, sa) and mining (-0.8% MoM, sa). Meanwhile, electricity, gas and water and construction increased 1.7% MoM, sa and 1.1% MoM, sa, respectively.

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