Mexico’s Manufacturing Orders Indicator (equivalent to the Purchasing Managers' Index, PMI) decreased 4.3 percent in November, year-over-year, the second consecutive annual decline. The decline was motivated by the decrease in four of the five main components of the indicator, according to SteelOrbis' analysis of data from the national statistics agency Inegi.
Of the five components that make up the PMI, the largest decline was in the expected volume of orders with 7.2 percent, year-over-year. The expected production volume decreased 6.9 percent, the expected delivery of inputs from suppliers decreased 3.1 percent, and the opinion on new worker hiring decreased 1.6 percent.
In contrast, opinion on input inventory increased 4.5 percent. This increase broke the decline of the last two months.
The manufacturing industry in Mexico is the largest generator of formal employment, with 6.0 million workers, accounting for 27.8 percent of the total. The industry contributes 21.1 percent of Mexico's GDP ($1.80 trillion).