Mexican manufacturing is major catalyst for the economic growth
Economic gains strongest in the vibrant Mexican manufacturing sector.
A study released by the financial institution, Banco Base, and disseminated by the National Maquiladora Association, or INDEX, demonstrates that Mexican manufacturing is a principal and strong catalyst for the country’s economic growth.
According to Banco Base findings, Mexican manufacturing companies in the maquiladora sector for export have increased their production capital in recent months. Banco Base researchers speculate that this development is in reaction to an anticipated increase in activity in 2015. The assumption is quantified by Banco Base in data that demonstrates that, during last November, manufacturing grew at an annual rate of 5.31%. This figure represents a rate of growth superior to that of any other sector of Mexico’s economy, as well as is representative of Mexican manufacturing growth that was .71% greater than that achieved one month prior.
Within the Mexican manufacturing sector, growth was most pronounced in
- the elaboration of textiles in Mexico;
- the fabrication of machinery and equipment;
- the manufacture of electronics;
- the production of machinery used to generate electrical power.
Although other areas of the economy made gains similar to those enjoyed by the Mexican manufacturing sector, others experienced a deceleration of activity. While the construction sector in Mexico grew at a 5.03% pace during November of the previous calendar year, contraction was reported by Banco Base in areas such as the production of chemicals, as well as in the paper industry.
A closer look at the influx of production capital, or machinery an equipment, that occurred during the fourth quarter in 2014, evidences that year over year investment in such items by maquiladora producers rose by 11.85% when viewed from a year over year perspective. An important sub-sector of the Mexican manufacturing economy that experienced similar year over year gains was that which includes electrical apparatus and electronic equipment. Taken together, Mexico’s inventory of capital machinery in these important areas of the nation’s manufacturing base rose by 4.6% annually.
As might be conjectured the influx of Mexican manufacturing machinery in anticipation of greater production levels was accompanied by increased hiring in the maquiladora sector. Banco Base reported that during the month of October 2014, their were 25,316 more manufacturing portions in the country than existed in the previous month. This represented a gain of 1.14% when compare with the month of September, and when looked at in annual terms, an increase of 6.28%
Read the primary source for this post in its original Spanish at El Economista.
Banco Base’s study is available in Spanish from Mexico’s national maquildora industry advocate, INDEX.