Mexico’s industrial production fell 2.2% year-on-year in October after falling 0.4% in September, as published by the National Institute of Statistics and Geography (INEGI). The decline has worsened market expectations, as a drop of 0.6% was expected. This is the third month of consecutive declines for the indicator, which suffers its biggest drop since March.
The monthly indicator is down 1.2% after rising 0.6% the previous month, disappointing consensus forecasts for a 0.2% drop.
Mexican Peso Reaction
The Mexican Peso rose to six-day highs against the US Dollar ahead of the release, causing USD/MXN to test the 20.10 zone. After the bad industrial production data, the Dollar has gained some ground and the pair is trading at the time of writing at 20.11, practically flat on the day.
economic indicator
Industrial Production (YoY)
Industrial production that publishes INEGI measures the production of factories in Mexico. Changes in the trend of industrial production are closely followed as an indicator of the strength of the manufacturing sector. A reading higher than anticipated is bullish for the Mexican peso while a lower reading is bearish.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
