Mexico: Merchandise trade data remains upbeat in February
Staff Writer |
On the back of robust factory and auto output in the United States, the merchandise trade balance in Mexico swung to a $1.1 billion surplus in February from the record-high $4.4 billion deficit recorded in January.
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Most components showed strength in February and continue to point to a gradual economic turnaround early in the year on the back of robust growth in the United States and waning domestic headwinds.
Exports rose a healthy 12.3% from the same month of the previous year in February, coming in only marginally below the 12.5% expansion recorded in the previous month. Exports in February totaled $35.2 billion.
The solid reading was the result of strong manufacturing exports, with auto exports in particular recording an outstanding 17.9% expansion in the month thanks to strong production levels in the United States (January: +9.0% year-on-year).
That said, overall manufacturing export growth was unchanged at a robust 10.5% in February due to a moderate deceleration in non-auto manufacturing exports.
Meanwhile, import growth lost some steam in February, with non-oil consumer imports—a proxy for domestic private consumption—taking a breather. Other components, however, were quite encouraging.
Non-oil intermediate imports—which are closely interlinked with manufacturing activity—recorded a solid 9.1% expansion in February, only somewhat below the 13.0% leap recorded in January.
Capital imports, a proxy for investment, recorded an outsized 20.1% increase in February, topping the already upbeat 18.8% rise recorded in January. Overall import growth moderated to 11.7% in February from 14.1% in January, totaling $34.1 billion.
The 12-month trailing trade deficit narrowed to $11.5 billion in February from $11.8 billion in January, below the $11.8 billion deficit recorded in February 2017.
Panelists surveyed for this month’s LatinFocus report expect exports to reach $432 billion in 2018, which would represent a 5.5% expansion compared to the previous year.
Meanwhile, imports are expected to grow 5.2% and reach $442 billion. For 2019, the panel expects both exports and imports to expand 5.4%. ■