Industrial activity slows down again in Mexico

Mexican industrial activity fell 0.53 percent at a monthly rate during June 2021, making it its third consecutive month of declines, the National Institute of Statistics and Geography (Inegi) reported on Wednesday. The Monthly Indicator of Industrial Activity (IMAI) registered its largest drop since May 2020, on that occasion it fell 0.76 percent.

It also reached 97.76 points, its lowest level since December 2020. According to the press release, the decline in the IMAI was the result of a drop in all its components. The construction industry presented the largest drop with a 2 percent decline at a monthly rate, its largest decline since September 2020, when it fell 4.77 percent.

This decline was driven by a 3.5 percent drop in the building segment, with civil engineering works falling 1.7 percent. Meanwhile, specialized construction work increased by 3 percent.

On the other hand, the electric power generation, transmission, and distribution, water, and gas supply industry presented a 0.5 percent decrease at a monthly rate, after a 1.1 percent increase last May. Within this sector, the generation, transmission, and distribution of electricity fell 0.7 percent, and the supply of water and piped gas to the final consumer rose 0.1 percent.

In the case of manufacturing industries, they fell 0.1 percent in said period, marking their third consecutive month with declines.

Among the 21 manufacturing industries, 12 reported 'negative numbers', among which the decrease of 6.39 percent in the manufacture of oil and coal products, and the manufacture of accessories, electrical appliances, and electric power generation equipment with 5.48 percent stood out.

According to Inegi's report, the mining industry presented a 0.8 percent drop at a monthly rate, ending two months with increases. On an annual basis, the indicator presented a real increase of 13.6 percent in June, based on seasonally adjusted figures.

By sector of economic activity, construction rose 15.5 percent, electricity generation, transmission and distribution, water and gas supply through pipelines to the final consumer 7.2 percent, and mining 5.2 percent. Meanwhile, manufacturing industries rose 16.3 percent.