Numbers reported by Mexico’s Instituto Nacional de Estadística y Geografía (National Institute of Geography and Statistics), or INEGI, indicate that the overall pace of the sale of Mexican exports slowed during the first month of 2015. This deceleration of overseas sales occurred dispite a depreciation in the Peso-Dollar exchange rate.
Data from INEGI showed that Mexican exports in January totaled 1.8% less in value than those shipped abroad during the corresponding month in 2014. This was the largest year over year drop recorded during the last two years. This past January’s drop was 3.7%, when compared to December of 2014. Mexican economists ascribe some of this loss in export volume to a reduction of shipments of crude oil to global markets, but also note that non-automotive manufactured Mexican exports sales have decreased, as well.
Non-automotive manufactured Mexican exports represent fifty-eight percent of the total gooods that the country’s producers ship to global markets. During the month of January 2015, their growth was limited to a pace of 1.4% in annual terms. This number contrasted sharply with the register of 14.7% growth in December of 2014, as well as with a seven percent average for the previous three months. Analysts at several of Mexico’s financial institutions, among them were Banorte, Multiva and Vector, agreed that the slow down in the pace of non-automotive manufactured Mexican exports was due, in significant part, to a slowdown in consumer purchasing demand in the United States. The banking experts also postulated that the slowdown is a result of US importers purchasing large volume of Mexican imports during the end of 2014 to take advantage of a favorable Peso-Dollar exchange rate, which resulted in a significant build up of inventory that has yet to be consumed.
Beyond non-automotive manufactured Mexican exports, foreign sales in the petroleum sector experienced a US $1.19 billion dollar negative balance during the first month of the year. Including January’s figure, this is the third consecutive month in which Mexican oil exports have slowed in pace. According to INEGI statistics, exports of fuel oil from Mexico totaled $ US 2.16 billion in January. This represents a 47.7% monthly year over year decrease, when compared to January 2014, as well as is the largest drop in year over year sales recorded since August of 2009.
Mexico’s National Institute of Geography and Statistics, (INEGI by its name in Spanish, Instituto Nacional de Estadística y Geografía) is an autonomous agency of the Mexican Government dedicated to coordinate the National System of Statistical and Geographical Information of the country. It was created on January 25, 1983 by presidential decree of Miguel de la Madrid.
Read the primary source for this post in its original Spanish at El Porvenir.