Mexican economy likely to expand 0.6% q/q

Barclays has revised up the growth outlook for the Mexico from 0.2% to 0.6% in Q4 2015. According to the latest economic data, the Mexican economy expanded 0.1% m/m sa in November, stronger than expected (-0.4%) as result of a solid expansion in service sector at 0.3%. Such favourable results will partially offset by the contraction in the industrial sector.

According to the latest economic condition, industrial sector in Mexico will lose steam in the coming months, driven by a stagnated mining and construction sectors combined with a soft manufacturing driven by slower external growth. In nut shell, Mexico will likely to grow by 2.5% in 2015 and 2.3% y/y in 2016.