The Mexican mining industry is in a tailspin since 2014
After maintaining a level of production without significant changes during 2013, since January 2014 the mining activity began a trajectory in a dive that by December 2018 was placed at the lowest level at least of the last five years, reported the National Institute of Geography and Statistics (Inegi).
During December, the indicator of mining activity in Mexico stood at 74.4 points, ranging from 0 to 100. This figure is the effect of a contraction of 0.8 with respect to the previous month; 8.4 percent less when compared to December 2017; and an accumulated loss during the whole year of 5.5 percent, an effect, to a greater extent, due to the reduction in the extraction of oil and gas.
In general, the Monthly Indicator of Industrial Activity (IMAI), which measures the real evolution of productive activity in the country, registered an upside of 0.4 percent compared to November of the same 2018. With this, it was placed at 102.9, the lowest level of July 2014.
In addition to mining, the IMAI is composed of the generation, transmission, and distribution of electricity, water and gas supply through pipelines to the final consumer; construction and manufactures.
The generation, transmission, and distribution of electricity, water and gas supply by pipelines to the final consumer was the activity that contracted the most with respect to November (3.8 percent monthly); the aforementioned mining (0.8 percent) and manufacturing (0.7 percent). While construction was the only activity that grew in December compared to the previous month (0.6 percent).
In the annual comparison, that is to say, December of 2018 compared to the same month of 2017, the industrial production fell 2.5 percent. By sectors: mining decreased by 8.2 percent, construction by 3.9 percent and the generation, transmission and distribution of electricity, water and gas supply by pipelines to the final consumer 1.1 percent; while the manufacturing industries increased 0.5 percent in relation to the same month of 2017.
According to the cumulative for the whole 2018, when averaging the variations from January to December, the total industrial activity had a slight increase of 0.2 percent, driven by the increases in the generation, transmission and distribution of electric power, water supply and of gas by pipelines to the final consumer (2.1 percent), construction (0.6 percent) and manufacturing (1.7 percent).
While the mining countered the growth of the other three activities with a collapse of 5.5 percent throughout the year.