During the seventh month of the year, the economic activity of Mexico showed a growth of 0.6 percent compared to the previous month, the National Institute of Statistics and Geography (INEGI)after June saw no growth or decline.
The institute reported that the Global Indicator of Economic Activity (IGAE) and with seasonally adjusted data, shows a growth of 11.6 percent in July for primary activities, which include agriculture, animal husbandry and exploitation, forestry, fishing and hunting.
As regards the tertiary ones, which focus on service sector and tradealso showed a growth trend by registering in the seventh month of 2024 an increase of 0.4 percent, according to figures from the Inegi.
While the activities dedicated to the mining, manufacturing, construction and electricity, better known as secondary, also showed an upward trend of 0.2 percent.
The July results break with a period of moderation in this indicator, since it was in May, the last time that an increase of 0.7 percent was recorded in this indicator, and then in June it stagnated without registering any movement.
Inegi pointed out that at an annual rate and with seasonally adjusted series, the IGAE increased by 2 percent in real terms.
It should be noted that, divided by major activity groups, primary activities increased by 12.5 percent, tertiary activities by 2.2 percent, and secondary activities by 0.6 percent during the month of July.
This indicator allows us to understand and monitor the evolution of the real sector of the economy in the short term, providing valuable information for decision-making, since it has a national scope.
The institute commented that the IGAE reaches a representation of 94.8 percent of the Gross Added Value of the year 2018, base year of the products of the National Accounting System of Mexico (Scnm).
In July 2024, with seasonally adjusted figures, the Global Economic Activity Indicator #IGAE presented the following variations:
⬆️ 0.6%, monthly
⬆️ 2.0%, annualBy component, the monthly variations were:
⬆️11.6%, primaries
⬆️ 0.2%, secondary
⬆️ 0.4%, tertiary… pic.twitter.com/HKyB0bQoJ3— INEGI INFORMS (@INEGI_INFORMA) September 23, 2024
July results surprise: Citibanamex
The financial institution Citibanamexhe noted in his analysis of the IGAE in July, surprised with the upward trend shown, mainly due to an expansion of agricultural production, which has shown volatility.
He also indicated that services were slightly above estimates; on the other hand, he stated that industrial production has been driven by the construction sector, while the manufacturing industry already shows a clear downward trend.
“Services show a modest growth trend, well below that observed between 2022 and the third quarter of 2023. In this sense, we estimate that economic growth will weaken for the rest of the year,” he said. Citibanamex.
With this panorama, the institution estimated a growth of Gross Domestic Product (GDP) of 1.3 percent annually in 2024, with upward biases.
MRA
