[Economics] Plop! Mexico's economy gives 'signs' of stagnation in March

[#Wittels-]

The war unleashed by Russia in Ukraine influenced the cyclical indicators of the Inegi.

Cyclical indicators gave signs that economic activity stalled as Russia's war in Ukraine put additional inflationary pressures.

According to the System of Cyclical Indicators (SIC) of the National Institute of Statistics and Geography (Inegi), the leading indicator, which anticipates changes in the trajectory of the country's economic cycle, obtained a decrease of 0.7 points in March to be located at 100.87 units.

This represented the eighth consecutive drop in the indicator, reaching its lowest level since February 2021.

It is observed that this indicator was above its long-term trend, presenting a value of 100.87 points. The monthly report reveals that two of six of its components registered negative variations.

Components in detail

 

The business confidence indicator, the right time to invest, presented an advance of 0.1 units. The equilibrium interbank interest rate shows an increase of 0.33 points.

For its part, the employment trend in manufacturing rose 0.16 points, while the Standard & Poor's 500 index (United States stock index) fell 0.28 units.

The indicator coincided with a monthly increase of 0.21 units during February 2022, settling at 100.46 points. In this way, this index accumulated 21 consecutive months with advances, according to data from the institution.

 

The result of this index is due to the fact that five of six of its components that make up the coincident indicator presented advances in their monthly comparison.

Within it, the indicator of industrial activity advanced 0.27 units compared to the previous month and the global indicator of economic activity advanced 0.18 points.

Likewise, an increase was shown in the number of insured before the IMSS with 0.11, total imports rose 0.23 points and the index of income per units of supply of goods and retail services with 0.13 units; while the urban unemployment rate fell 0.25 units.

 

Link: https://www.elfinanciero.com.mx/economia/2022/05/04/plop-economia-de-mexico-da-senales-de-estancamiento-en-marzo/