- Manufacturing grows less than most projections in November
- Oil production decline continued to weigh on total output
Mexico’s industrial production stagnated in November, surprising analysts who expected it to grow, amid weak manufacturing expansion and a decline in oil and gas output.
Output increased 0.1 percent in November from a year earlier, the national statistics institute said on its website Monday, the least in six months and less than the 1.3 percent median forecast of 16 analysts surveyed by Bloomberg. Production fell 0.5 percent from a month earlier. Manufacturing expanded 1.8 percent from a year prior, below all but one analyst forecast.
Mexico’s economy has been held back by weak demand and factory activity in the U.S., the nation’s primary trade partner, and a decade-long decline in output by state-owned oil company Petroleos Mexicanos. The country’s industrial weakness could spill over into this year, said Pedro Uriz, a strategist at Grupo Financiero BBVA Bancomer SA in Mexico City.
“There are no telling signs of a significant turnaround in the near term despite a very competitive currency,” Goldman Sachs Group Inc. economist Alberto Ramos said in an e-mailed research report.
Mexico’s peso rose 0.5 percent to 17.8440 per U.S. dollar at 8:41 a.m. in Mexico City.