Low investment and inflation in prices of raw materials and final products affect the manufacturing sector of NL: Caintra

Monterey, NL. The economic activity of the manufacturing sector in the first two months, it started with a weakness in production and exceeded the expansion threshold in some indicators. On the other hand, investment remained below the average level and inflation impacted the prices of raw materials and final prices, indicated the Survey of Economic Expectations of Caintra Nuevo León.

The index of the physical volume of production accumulated three consecutive months in contraction, going from 49.8 points in January to 49.3 points in February. In contrast, the indicator for new orders, went from 49.5 points in January to 50 points in Februarystanding on the threshold of expansion, mentioned the survey carried out with 103 companies, by the Chamber of the Transformation Industry of Nuevo León, from March 4 to 14, 2022.

Similarly, the imports index was located above the expansion threshold. However, the one for exports fell to 49.8 points in February, after its rebound in January.

The inventory index added two consecutive months in contraction and stood at 49.4 points in February.

The industry maintains an activity that is accelerating, for example, the employment indicator increased to 51.9 points in February, as well as the capacity used reached 51.5 points in the second month.

On the other hand, only 28% of companies answered that they made some investment in machinery, equipment or construction in February, due to the fact that a panorama of uncertainty remained in the sector, with a below-average level of investment.

In addition to this, inflation levels continue to cause concern, since price indices were once again the highest. In particular, the price index for final products reached 60.7 points and the price index for raw materials stood at 68.1 points in February.

Therefore, the increases in the prices of raw materials were once again the main obstacle to the performance of the industry, affecting 49% of companies.

Second, weak economic activity hurt 38% of industrialists during February. In addition to a political landscape that hinders 31% of the industry.

Another factor that has stood out in recent months is transport logistics, affecting 29% of the industry. In particular, businessmen have mentioned that the implementation of the Carta Porte complement has affected their performance.

Leave a Comment