Mexican economic activity contracted for the second consecutive month last September, thus in two of the three months of the third quarter it presented negative rates, according to data released by the National Institute of Statistics and Geography (Inegi).
The Global Indicator of Economic Activity (IGAE), which monitors the behavior of the Mexican economy on a monthly basis, registered a contraction of 0.4% per month in September, with seasonally adjusted figures.
Thus, it ran for two months with negative rates, in August the data showed a contraction of 1.2%, monthly.
The data was contrary to what Inegi himself predicted through the Timely Indicator of Economic Activity, which had shown a monthly growth of 0.3% in September.
“This implies a moderate deterioration for the short-term economic outlook, which was also reflected in the downward revision of the preliminary GDP figures for the third quarter (…) As a whole, this dynamic significantly amplifies the risks on the trajectory estimated for a growth of 6% in the whole year ”, pointed out Marcos Daniel Arias, analyst at Monex.
The report observed that the contraction of the economy was due to the general weakness of the three economic activities.
Primary activities, which encompass the agricultural sector, contracted 1.4% per month, as did the industrial sector. Meanwhile, tertiary activities reported a negative monthly rate of 0.3%, their fourth consecutive downward record.
At an annual rate, the IGAE grew 1.3 percent.