Economic overviews of Mexico and Canada -- November 22, 2007

Mexico:

General: Leading economic indicators in August were at an index of 125.9, which is very similar to the July index, but down from 131.5 in August of last year. The Consumer Confidence Index in October was 101.4, down from 108.6 for October 2006.

GDP:  + 3.7% in Q3, a pleasant surprise after growing 2.8% in Q2. Strong export numbers to the US, particularly in the automotive sector, were driving the resurgent growth.

Consumer Prices: + 3.74% in October, slightly down from 3.79% in August. The core inflation rate (factoring out food and gasoline prices) for October was 3.91%. The Central Bank adjusted their inflation rate for 2008 upwards to 4.0%.

Industrial Production: + 0.4% in September over August. Because of bomb attacks on natural gas facilities, a lot of factories ran out of energy supplies and had to shut down for a while. Manufacturing activity in September fell 0.3%, oil production level was - 1.5% and construction was up 2.7%.

Unemployment: 3.9% in September

Trade Balance: - $1.2 billion as of September for the past 12 months

Currency: Peso 10.9 to US$1 as of November 14 (unchanged from a year ago)

Steel Production: 1.5 million mt in October or 3.7% ahead of last year. In the first ten months of the year, 14.4 million mt were produced ,or 6.5% more than last year.

Car Industry: 201,305 units were produced in October, or 6.0% ahead of last year. In the first ten months, 1,766,652 units were produced, or 3.3% more than last year.

Canada:

GDP: + 2.5% in Q2

Consumer Prices: + 2.5% in September; core inflation rate was 2.0%.

Industrial Production: +0.2% in August

Unemployment: 5.8% in October

Trade Balance: + $48.4 billion for the past 12 months

Currency: C$0.96 to US$1 as of November 14 (C$1.14 to US$1 a year ago)

Steel Production: 1.395 million mt or 7.5% more than last year. In the first 10 months of the year, 13.6 million mt were produced, or 4.5% more than last year.

Car Industry: 250,580 units were produced in October, or 24.0% more than last year. In the first ten months of the year, 2,192,645 units were produced, or 1.6% more than last year.

Steel shipping within the North American Free Trade Agreement (NAFTA):