US' neighboring economies resumed growth in Q3

Mexico: This year has been a difficult one for Mexico. Even though the economy started to grow impressively again in Q3, the overall contraction for 2009 will be around -7.1%, making it the worst year for Mexico's economy since 1932. Barring another financial crisis, growth for next year is expected to run around +3.5%. The annual inflation rate just falls into the central bank’s range and the record low benchmark interest rate of 4.5% was left unchanged for the fourth month in a row. Gross fixed income, a measure of spending on machinery, equipment and construction, was down -11.2% in August from last year. Future readings will reflect the resurgent economy and will likely show a positive trend. Ford will open a new diesel engine plant in the state of Chihuahua towards the end of the year.

Canada: The trade balance for the month of October was positive (+$408 million) after three consecutive months of deficits. The stronger economy in the US has a lot to do with it. In another positive development, 79,100 jobs were added in November and new home prices increased by +0.3% in October. The benchmark interest rate remains at 0.25% and will stay there until June 2010 – exactly as promised by the central bank.

General Data:

Automotive and Steel Production

Total Intra-NAFTA Steel Shipments, September 2008-August 2009, in Thousands Metric Tons