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Manufacturing in Mexico saw fastest rise in new orders for 12 months

Staff writer ▼ | April 5, 2016
Mexican manufacturing business conditions improved again during March, underpinned by faster rates of output and new business growth across the sector.
Manufacturing in Mexico
Mexico   Markit Mexico Manufacturing PMI
Staffing levels also increased, albeit at a slower pace than in February. Meanwhile, manufacturers noted that the weaker peso-dollar exchange rate had supported export sales but continued to push up raw material costs.

This in turn contributed to the fastest rate of factory gate price inflation since August 2015. The seasonally adjusted Markit Mexico Purchasing Managers’ Index (PMI) registered 53.2 in March, up fractionally from 53.1 in February and signalling the strongest improvement in business conditions since May 2015.

Moreover, the latest reading was comfortably above the neutral 50.0 threshold, which marked two-and-a-half years of sustained expansion across the manufacturing sector. March data pointed to a robust and accelerated increase in new business volumes.

The latest rise in new work was the fastest for 12 months, with manufacturers citing stronger demand conditions, successful new product launches and ongoing growth in export markets.

Reflecting this, higher levels of new business from abroad were recorded for the seventeenth month running, although the rate of expansion was unchanged since February.

Stronger client spending resulted in another solid upturn in production volumes during March. Moreover, output growth picked up for the second month running and was the fastest since November 2015.

At the same time, backlogs of work decreased slightly amid reports that efforts to boost operating capacity had helped to reduce outstanding business.

Manufacturers also sought to increase their stocks of finished goods in response to rising demand, with the latest rise the fastest since January 2015.

Job creation was maintained across the manufacturing sector in March, although the rate of growth was only moderate and slightly slower than in the previous month. â–