The Mexican Institute of Finance Executives (IMEF) warned that the data on the manufacturing and non-manufacturing indicators for the month of December suggest the absence of economic momentum at the end of 2024 and the results increase the possibility that the economy will close the year with a low or no economic growth.
“The signal from the IMEF indicators in the last months of the year continues to be one of stagnation or lack of solid expansion in both the manufacturing and non-manufacturing sectors. Both indicators registered a slight drop compared to the month of November, and their respective levels are in the contraction zone, so the reading is one of a lack of dynamism,” noted the IMEF.
According to information from the institution, last December, the IMEF Manufacturing Indicator fell 0.3 points, compared to the month of November, and was in the contraction zone for the ninth consecutive month, registering a reading of 47.7 units and being below 50, while the trend-cycle and company size-adjusted series remained below the expansion zone with levels of 47.8 and 48.1 respectively.
“Overall, the signal is strong, the figures reflect that the contraction of the manufacturing sector prevails,” warned the IMEF.
For its part, the IMEF Non-Manufacturing Indicator decreased 0.8 points and stood at 49.6 units, while the trend-cycle series prevailed without change, at 49.8 units and the one adjusted for company size contracted 2.1 points, standing at 49.5 units.
The IMEF explained that the three measurements fluctuate slightly below the threshold of 50 units, so the reading is of a lack of expansion or simply an absence of solid growth at the end of the fourth quarter of 2024.
“After having been the engine of economic dynamism in the first months of last year, the services and trade indicators at the end of 2024 suggest that the expansion of these sectors is not robust and could be on the verge of registering a generalized contraction,” he added.
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