The mexican economy contracted unexpectedly during October, showing that the country’s faltering recovery from the Covid-19 pandemic extended into the fourth quarter.
The Global Indicator of Economic Activity (IGAE), fell 0.2% compared to September, in its third consecutive month in decline, reported this Friday morning the National Institute of Statistic and Geography (Inegi).
Analysts had predicted that the IGAE would grow 0.8% percent. The weak October data adds to the 0.4% drop in GDP in the third quarter, which was its first setback since it began its recovery from the impact of the pandemic.
The figures showed that the decline was led by a 1.2% decrease in primary activities, which include agriculture, fishing and mining, and 0.5% in tertiary activities, which include services.
In contrast, secondary activities, which include manufacturing, increased 0.6% in the tenth month of the year.
Against the same month last year, the IGAE fell 0.7%, the data showed, also contrary to market expectations, which anticipated a growth of 0.9% percent.
The productive activity in Mexico It has been hit by bottlenecks in international supply chains, which have disrupted manufacturing in industries like automotive, a mainstay of the manufacturing sector.
Reference-www.eleconomista.com.mx