This morning the president Andres Manuel Lopez Obradorand the secretary of the treasuryRogelio Ramírez de la O presented measures that will strengthen and expand the PACIC by February 2023.
The president of the IMEF, Alexander Hernandezconsidered that this second part of the PACIC is an attempt to counter the inflation results not achieved with the May agreement, and that this second part focuses on the issue of foodswhich have levels of double digit inflationwell above the general rate.
“We believe, indeed, it was not enough, it was a good intention, but this extension for the PACIC to February of the following year underpins some aspects that had not been seen previously, such as production incentives, transport price controls, tariffs on imports, this must come to contribute, the important thing is that with other issues, such as economic policy, they could come to contribute in benefit of a reduction in inflation, especially in the area of food”, explained the executive.
key indicators
The IMEF highlighted that in September the IMEF Manufacturing Indicator registered an increase of 0.6 points compared to August 2022, standing at 50.1 units, and marginally returning to the expansion zone (above 50).
“The trend-cycle series remained unchanged and, with this, now adds two consecutive months in expansion territory, currently standing at 50.0 units,” reported the Institute.
In relation to the indicator adjusted for company size, it increased slightly 0.1 points and remains above 50 units (accumulating 27 months in the expansion zone).
“The reading of the Manufacturing Indicator is clear: manufacturing activity has entered a period of slower growth rate, consistent with the global trend. In fact, in other economies, the adjustment has been more severe, which suggests to us that the relative behavior of the industry is favorable”, highlighted Roldán.
Meanwhile, the IMEF Non-Manufacturing Indicator decreased 0.6 points during the same period, standing at 50.9 units. However, it already has eight consecutive months above the threshold of 50.
Its trend-cycle series was marginally reduced by 0.2 points, but it accumulates 20 months in the expansion zone (51.0 units), as well as the Adjusted Indicator for Company Size, which already has 13 consecutive months in this zone, closing at 52.6 units.
“In short, the Indicator suggests that the services and trade sectors continue to grow, although at a slower rate; however, the end of the third quarter of 2022 will be positive for the Non-Manufacturing industry”, the IMEF advanced.
