Mexico Confidence Gauges Weaken Again in October as Manufacturing Orders Pick Up

Overview

• INEGI reported the Global Indicator of Business Confidence at 48.6 points in October, down 0.8 month over month and 3.4 versus a year earlier.
• The business confidence gauge has stayed below the 50-point neutral mark for eight consecutive months, signaling restrained production and investment plans.
• Consumer confidence fell to 46.1 points in October, a 0.3 monthly decline and 3.2 lower than a year ago, with four of five components weakening.
• Expectations for the national economy in 12 months posted the sharpest monthly drop within the consumer survey, while purchase plans for household goods also slipped.
• The manufacturing orders index rose in October by 3.8% from September and 3.6% year over year, contrasting with preliminary Q3 GDP data showing a 0.3% contraction led by industry.