The Mexican homebuilding industry is among the nation’s most-exposed sectors to the outcome of U.S. budget negotiations, Standard & Poor’s analyst Eduardo Uribe said.
Spending cuts and tax increases totaling more than $600 billion will start taking effect next year, potentially triggering a recession in the world’s biggest market, if U.S. lawmakers fail to reach an accord.
“If the economy deteriorates, it could block their access to financing” and leave them with a backup in inventory, Uribe said in a telephone interview today from Mexico City. The industry “depends on external financing for growth and refinancing.”
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