Mexico | Manufacturing loses dynamism in February; slowdown in the automotive sector

Summary

The February figure (2.0% YoY) is the lowest since the end of 2021 and suggests a turning point for manufacturing this year, given the gradual deceleration in external demand.

Key points

• Key points:
• According to IGAE data, the automotive sector is already showing signs of weakening, registering a (-)1.7% MoM drop in production in January, while sales of vehicles and auto parts in the US fell (-)1.8% MoM in February.
• In terms of capacity utilization, sectors such as computer equipment, electrical appliances, machinery and equipment exceeded their pre-COVID level by more than 10% in January.
• The automotive segment is at 84.7% of capacity utilization, the lowest figure since July 2022.
• We anticipate the slowdown in manufacturing to continue as demand for durable goods in the US weakens.

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