Fri, 07 May 2021

MEXICO CITY, April 9 (Xinhua) -- Mexico's industrial activity grew 0.4 percent in February compared to the previous month, marking nine consecutive months of growth, according to seasonally adjusted figures released Friday by the National Institute of Statistics and Geography (Inegi).

A breakdown by sectors shows construction grew 2.5 percent in February, while mining rose 2.3 percent, Inegi's monthly report said.

On the other hand, the generation, transmission and distribution of electricity, as well as the supply of water and gas through pipelines to the end consumer, fell 3.8 percent in the second month of the year. Manufacturing also dipped, by 2.1 percent.

Year-on-year, industrial activity dropped 4.5 percent in February, for an accumulated setback in the first two months of the year of 4.8 percent annually, according to the autonomous statistics agency.

In responding to the report, Mexico's Monex Financial Group said February figures demonstrated "the growth potential" that the recovery of the most lagging activities, such as construction, could contribute to the economy.

"So despite the latent possibilities of new spikes in COVID-19 infections and more permanent cuts to auto production, we could revise our growth estimate upward in the coming weeks," Monex said.

On March 31, the Finance Ministry upgraded its growth forecast for 2021 to 5.3 percent, while projecting a stronger domestic market as vaccination against COVID-19 makes progress.

Mexico's economy, the second largest in Latin America after Brazil, plummeted 8.2 percent in 2020, its worst performance since the 1930s, due to the impact of the pandemic.

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