MEXICO CITY, Nov. 9 (Xinhua) — Industrial activity in Mexico grew 1 percent in September compared to August, its largest increase in nine months, the National Institute of Statistics and Geography (Inegi) said on Friday November 9.
The growth was in direct contrast to the decline observed in September 2017 when it fell 1.2 percent, according to data from Inegi.
The growth was spurred largely by manufacturing production which grew 1.1 percent.
In respect to the annual comparison, industrial activity grew 1.8 percent in September year-on-year, for an accumulated growth of 0.5 percent in the first nine months of the year compared with the same period of time last year, according to Inegi.
Mexico’s industrial activity depends in large part on the activity in the United States, the main Mexican business partner.
In a report to its clients, financial group Banorte said that manufacturing activity will continue to boost the local industry, while the mining sector could remain weak.
“In this sense, we believe the persistent downturn in petroleum and gas will continue to be a strong limiting factor in industrial production,” Banorte said.
The Mexican economy, the second largest in Latin America behind Brazil, could register economic growth between 2 and 2.6 percent this year, according to forecasts from the Central Bank of Mexico (Banxico).
In 2017, the Mexican gross domestic product (GDP) grew 2 percent.
Financial authorities have warned about internal and external risks for the economy, including the commercial relationship between Mexico and the United States.