Mexico: Manufacturing production and employment contract at record rates
Christian Fernsby ▼ |
Following a mild improvement in the health of the manufacturing industry in October, economic conditions took a turn for the worse.
Article continues below
November saw a renewed decline in sales contribute to the quickest contractions in production, input buying and employment since the survey started in April 2011.
Concurrently, business confidence sank to a series low, dampened by future uncertainty.
Subdued demand conditions also acted to attenuate price pressures.
Input cost inflation softened to the slowest in the over eightand-a-half-year survey history, while manufacturers reduced their charges.
At 48.0 in November, the seasonally adjusted IHS Markit Mexico Manufacturing PMITM signalled a modest deterioration in operating conditions.
The headline figure was down from 50.4 in October to its lowest mark since the inception of the survey.
Amid reports of falling sales, machinery issues and economic woes, manufacturing production contracted in November.
The reduction in output was the sixth in consecutive months and the fastest on record.
Despite falling moderately, new business inflows posted the second-sharpest contraction in the survey history, beaten only by that noted mid-year.
Projects pending approval, fewer customer orders, competitive pressures and economic troubles were among the reasons listed by panellists for the decline in sales.
Weak demand from external markets contributed to the drop in total orders, as seen by a solid reduction in new export business midway through the final quarter of 2019.
Faced with fewer orders, Mexican goods producers worked through their backlogs and lowered headcounts.
Outstanding business declined at a slight pace that was the quickest since February, while the rate of job shedding was the fastest in the history of the survey.
Anecdotal evidence pointed to the termination of temporary contracts, downsizing and reduced working hours.
Spending on input buying was likewise curtailed during November.
Not only did quantity of purchases fell for the ninth month running, but also at the quickest pace on record.
As a result, input holdings declined, after accumulation had been noted in October.
The pace of stock depletion was moderate, but the quickest in the survey history.
Although post-production inventories continued to increase, the pace of expansion eased to a five-month low and was marginal overall.
Subdued sector conditions dragged the rate of input cost inflation to a survey low, with companies in turn lowering their selling prices.
Lastly, business confidence dipped to its lowest level in the series history, with a number of survey participants concerned about market uncertainty and the state of the domestic economy. ■
What to read next
Sonic Automotive announced it has acquired Audi Owings Mills.
LatestPonsse launches new technology: electric forest machine
First 100 Ukrainian farmers compensated through WFCU agricultural loan reimbursement program
Radisson Resort Plaza Skiathos opens in Greece
Mainstream Renewable Power pledges to create 100 new jobs in Ireland
American naval training aircraft crashes in Texas
Plane with damaged wing makes emergency landing in Irkutsk region
U.S.: Excessive heat for south and west, flash flooding conditions in southwest
Iran seizes unprecedented amount of crystal meth
South Africa: Police operations net 53 suspected illegal miners
Nearly 70% of America's top executives affiliated with Republicans
Russian gas supplies via Ukraine, Nord Stream to remain at previous volumes on Wednesday
EU economy greenhouse gases still below pre-COVID levels
Hundreds of workers at Liverpool port vote to strike over pay
Five more grain-carrying ships leave Ukrainian ports
Czech Republic seizes part of Gazprom’s gas storage capacity
Minister Ng to strengthen Canada-Philippines ties with upcoming visit
New trading scheme in UK cuts tariffs on hundreds of everyday products
Hungarian government to fast-track domestic gas production
Illinois Governor announces $34.6 billion investment in transportation over six years
Today We Recommend
Ponsse launches new technology: electric forest machine
Next.e.GO Mobile starts building €720mn electronic car plant in North Macedonia
EIB to support Ryvu Therapeutics with €22 million
Gazprom does not rule out gas prices in Europe over $4,000 in winter
Joysbio developed two new monkeypox tests that deliver results in 15 minutes
Philips appoints Roy Jakobs as president and CEO
Daseke appoints Bruce Blaise to board
Island Pacific appoints Herman Chiu as CFO
Horizon Bancorp appoints Thomas M. Prame as president
Encora appoints Deepak Bhandari as EVP, head of corporate development
Indonesia sets economic growth at 5.3 percent, inflation at 3.3 percent in 2023
Slovenia's Q2 GDP growth slows to 8.2 pct y-o-y
UK inflation hits 10.1% in 40-year high
U.S. housing market index drops to two-year low in August
German investor confidence falls
Home Depot Q2 profit climbs
BioMar achieves record Q2
AD Ports Group Q2 net profit surges 59%
Strauss Group H1 revenue increased 8%
BHP net profit nearly triples
Niger set to monetize massive gas reserves through Saharan natural gas pipeline
Putting the brakes on EV folly that choked the market
Oil discovery in Kavango Basin may mean huge benefits for Namibians
Cape Town and Dubai battle over Africa's energy future
Is America going to lose its superpower status?
Commission approves €218 million Bulgarian scheme to support agricultural producers
HPAI case in Pennsylvania affects Warren County in New Jersey
South Africa suspends cattle movement to control foot and mouth disease
Russia sent first batches of fodder meal from Kursk region to Vietnam
Rosselkhoznadzor: Illegal import of more than 500,000 doses of vaccine against low pathogenic avian infections stopped
If company overcomes post-IPO innovation slump, it will survive longer
62% of consumers will stop buying from brands that compromise products to cut costs
Companies must invest to avoid supply chain scandal or pay the price in lost consumers
How awards, recognition decrease inventors' creativity
Keeping employees is harder than ever. And we don't have good news
Google LLC to pay $60 million for collecting users' location data
Ex-company director from Solihull to pay £11,200 for exporting banned waste
South Korea fines 11 companies $197.5 million for price fixing
Healthcare workers in Italy put at risk due to aggravated fraud relating to protective face masks and suits
South Africa's Special Tribunal orders freeze of Transnet executives' assets
Enjoy the best Greek food in Alaska
The SureStay Hotel by Best Western Rockford East opens in Rockford, Illinois
Avani Chaweng Samui Hotel & Beach Club opens in Thailand
Buffalo Bill is coming to Manitowoc with his Wild West show
Pullman Doha West Bay Hotel opens in Qatar
Porsche unveils newest generation of 911 GT3 R
2023 Subaru Crosstrek sells like hotcakes
New Mercedes‑Benz GLC, at home on any terrain
GMC unleashes new 2023 Sierra 1500 AT4X AEV Edition
First BMW M3 Touring presented
Nobody's Child, everybody's favorite
Freddy WR.UP, pants that hug you in all the right places
Stylishly luxurious house design
Great design ideas that might not work for you
Garden mirrors, explore new views of your garden
Shure MV7 professional dynamic microphone now available in new limited-edition color
Forget streaming services, use McIntosh MR89 to enjoy AM/FM music
Infinix NOTE 12 PRO, first smartphone powered by MediaTek Helio G99
MW75 active noise-cancelling headphones, variety of new features
Parasound JC 1+ mono power amplifier by John Curl, pure delight
West Nile virus kills 1 in Serbia
Infected blood victims in UK to receive £100,000 interim compensation payment
Malta receives first shipment of monkeypox vaccine
Iran reports first monkeypox case
Uruguay decreed universal and free care for hyperacute stroke treatment
Earth's water may be from asteroids
Climate change increasing risk of megaflood in California, Americans ill-prepared and uninsured
Brightest stars in the night sky can strip Neptune-sized planets to their rocky cores
California weather is trending toward extremes
Swiss mountain pass ice to melt completely within weeks