Mexico manufacturing set to decelerate

Mexico's industrial production increased 0.2% m/m sa in August as a result of a positive performance in manufacturing (1.0% m/m sa) partially offset by reductions in the production of mining (-0.3%) and in construction activities (-0.6%). In annual terms, IP increased 1.0% y/y.

After this report, the GDP proxy of August would be increasing 0.1% m/m sa, setting their GDP tracker at 0.4% q/q sa, right at Q3 GDP forecast and consistent with annual growth of 2.2% y/y for the year as a whole, estimates Barclays.

An stabilization of oil production in the coming months as oil production increased 0.4% m/m sa in September, becoming less of a drag; however, manufacturing might decelerate due to lower global growth, added Barclays. So far, car production declined 1.3% m/m sa in September.