IGAE report confirms that the Mexican economy decelerated in Q1

The Mexican economy did not grow in February as the GDP proxy for this month reported 0.0% m/m sa, driven by a very timid expansion in industrial activities and no growth in the services sector.

"We are expecting IP to have grown 0.1% m/m sa in March. If this forecast is correct, our GDP tracker for Q1 15 will stand at 0.4% q/q sa, almost in line with our forecast of 0.3%, consistent with our 2.6% y/y growth forecast for the full year." - said Barclays

The report also confirms that the Mexican economy decelerated in Q1, though it will likely start growing faster in Q2 as the lead-up to the elections and related spending provide an additional push to aggregate demand.