Key insights
- Mexican economic activity underperformed expectations in February, contracting 0.3% year-over-year. Weakness in Mexico, a major US trading partner, could modestly dampen US export prospects and supply chains, presenting a slight headwind for US equities. The miss raises concerns about regional growth and potential spillover effects.
MEXICO CITY, April 24 (Reuters) - Mexico’s economic activity expanded slightly in February but missed expectations, extending its rough patch since the start of the year, official data showed on Friday.
Mexico’s economy expanded 0.1% in February from the prior month, the national statistics agency said, compared with a revised decline of 0.7% in January. The economic activity missed a 0.5% increase forecast by analysts in a Reuters poll.
Month-on-month, activity in the primary sector and the labor-intensive tertiary sector declined by 0.1% and 0.3%, respectively.
Meanwhile, the secondary sector, including construction and manufacturing, grew 0.4%.
On an annual basis, the economy also missed forecast with a 0.3% decline, while analysts expected a 0.6% increase.