Manufacturing activity in Mexico contracted for a 15th consecutive month in June, though at a slower pace, according to a purchasing managers' survey.
The manufacturing purchasing managers' index (PMI) rose to 47.8 in June from 47.5 in May, marking the 15h consecutive month below the 50-point threshold between contraction and expansion, the finance executives' association IMEF said.
The subindex for new orders increased by 0.8 points to 45.3 in June after recovering 2.7 points in May, marking a second month of slowing contraction from a post-pandemic low for the indicator in April.
The production subindex in June held unchanged from May at 46.7, while the subindex for employment decreased 0.3 point in June to 44.4. New orders and production have now been in contraction for 15 consecutive months, and employment for 17.
The inventories subindex rose 1.6 points in June to 53.1, following on a 5-point increase in May, marking a second month in expansion.
The IMEF, which compiles the PMIs with statistics agency Inegi, said the manufacturing PMI in June "confirms that, despite some ups and downs, the manufacturing sector has lost strength and remains stuck in a contraction."
It added sustained uncertainty around trade tensions continue to limit decision-making for business, and "internal growth drivers are beginning to show wear." Meanwhile, it added, trade tensions are now compounded by geopolitical tensions, with the outbreak of the Israel-Iran conflict.
The non-manufacturing PMI — covering services, commerce and trade — decreased 1.1 points in June to 48.7 after nudging 0.3 points higher the previous month. This marked the seventh month in contraction, under 50.
Within that index, new orders decreased by 0.3 points in June to 49.2 after rising 0.7 points in May. The production subindex decreased 2.0 points in June to 48 after rising 1.7 points in May, and employment fell by 1.6 points to 47.0 in June after decreasing 0.4 points the previous month.
