Mexico | Manufacturing shows dynamism in October; slowdown towards 2023

The BBVA Multidimensional Manufacturing Indicator (BBVA MMI) grew 8.7% in October (YoY), 0.6 pp above the previous month (8.1%).

Key points

• Key points:
• The average YoY rate reaches 5.9% (January-October), 0.3 pp above the figure observed for the January-September period.
• October data reflect the resilience that the US manufacturing sector has shown in recent months, especially that of the automotive sector, which registered a monthly variation of 2.1% during the period.
• However, the most recent figures of the US ISM Manufacturing point to a deterioration of the demand going forward; the new export orders component has been in contraction territory for three consecutive months, while the new orders component has been below 50 since September.
• We keep our outlook of low growth in 2023, in an adverse context for economic activity, with higher financing costs and less dynamic external demand.

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