Mexico | Manufacturing moderates in April amid lower external demand

The BBVA Multidimensional Manufacturing Indicator (BBVA MMI) grew 0.8% in April (YoY), the same figure registered in March, and 1.6 pp below the average reported in 1Q23.

Key points

• Key points:
• According to INEGI data, production in the automotive sector fell (-)2.5% MoM in March, while retail sales of vehicles and auto parts in the US registered zero growth in April in real terms, after two months of contractions.
• In terms of capacity utilization, total manufacturing production is 5.4 pp above its pre-pandemic level (Jan-2020).
• The level of capacity utilization recorded by the computing and communications equipment segment stands out, with a figure of 96.7%, the highest since the series was published, and potentially indicating higher future investment in this sector.
• In this context, we believe that promoting an environment of certainty for investment would promote nearshoring, allowing Mexico to take advantage of its geographical proximity to US.

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