April survey data pointed to the sharpest decline in business conditions faced by Mexican manufacturers since data collection began just over nine years ago.
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The result was driven by record contractions in both production and new business as measures to stem the spread of covid-19 stifled economic activity.
A sharp lengthening of input delivery times pointed to severe supply-side disruption and firms pared back staff numbers at a record pace.
Looking forward, firms were their most pessimistic towards the 12-month business outlook since the series was incepted in April 2012.
Falling from 47.9 in March to 35.0 in April, the seasonally adjusted IHS Markit Mexico Manufacturing PMI pointed to a further deterioration in business conditions faced by Mexican goods producers.
Moreover, the latest reading was the lowest since data collection began, with lockdown measures leading to widespread factory closures.
The fall in the headline index was partially driven by a collapse in demand at the start of the second quarter.
New orders fell at the quickest rate since data collection began in April 2011.
Panellists often associated declines with the coronavirus outbreak.
Amid a drastic decline in new business and restrictions leading to factory closures, production at Mexican manufacturers plummeted in April.
The decline was the fastest record since the survey's inception and sharp overall.
On the supply-side, average lead times lengthened sharply in April.
In fact, the deterioration in vendor performance eclipsed that recorded in March and was the sharpest in the survey's history.
Anecdotal evidence suggested that factory closures at vendors had led to widespread supply-chain disruption.
Mexican manufacturers reduced their staff numbers at an unprecedented rate in April.
The seasonally adjusted Employment Index fell to a record low as firms reacted to weaker demand conditions.
Manufacturers registered a marked decline in outstanding business during April.
The reduction was the quickest since the series began just over nine years.
Survey respondents often linked decreases in backlogs to plunging demand.
Meanwhile, input costs faced by goods producers fell in April, ending a nine-year sequence of inflation.
Panellists suggested that the fall in cost burdens was driven by supplier discounts which more than offset the effects of a stronger US dollar.
Finally, firms reported expectations for a decline in business activity over the coming 12 months.
Negativity was commonly linked to anticipation for a global economic recession amid the coronavirus pandemic. ■