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Industrial activity in Mexico sees second month of consecutive rise in July

Christian Fernsby ▼ | September 12, 2020
Industrial activity in Mexico increased 6.9 percent in July compared to June in the sector's second consecutive monthly increase, the National Institute of Statistics and Geography (Inegi) reported on Friday.
Mexico factory
Activity   Mexico factory
The manufacturing sector, which drove this improvement, grew 11 percent in July compared to June, while electricity, water, gas, construction, and mining also saw increases, the report showed.

Topics: Mexico

At an annual rate, however, the industrial sector in general showed a drop of 11.3 percent in July, for a total of a 13.7 percent decline in the first seven months of the year.

In a separate report, the Banorte Financial Group explained that Mexican industrial activity was favored by efforts to resume activities while enforcing the necessary sanitary measures in the midst of the novel coronavirus (COVID-19) pandemic.

"We continue to believe that manufacturing will remain relatively strong in the coming months," the private institution claimed, "however, signals are mixed for the short term after two months of recovery."

Mexico began on June 1 to gradually reactivate some sectors of the economy that had been closed since the end of March to prevent the spread of the virus.

The International Monetary Fund (IMF) has predicted a 10.5 percent drop for Mexico's economy in 2020 due to the pandemic.