Mexico GDP Growth Revised Down to 1.5% in Q3

The Mexican economy advanced 1.5 percent year-on-year in the third quarter of 2017, below a preliminary estimate of 1.6 percent and slowing from a 1.9 percent reported in the previous period. It was the weakest growth rate since the fourth quarter of 2013 as services and agriculture slowed down while industry shrank less, final figures showed.

The services sector rose 2.4 percent, matching the preliminary estimate and easing from a 3.1 percent increase in the previous quarter. Activities slowed mostly for: retail trade (0.2 percent vs 5.7 percent in Q2); transportation (2.4 percent vs 3.5 percent); information and communication (6.2 percent vs 6.9 percent); financial and insurance (8.2 percent vs 9.8 percent); real estate activities (1.4 percent vs 2 percent); health (2.5 percent vs 3.3 percent); cultural and sports activities (2.4 percent vs 4.6 percent). Also, output declined for professional, scientific and technical activities (-5.8 percent vs 2.9 percent) and education (-2.3 percent vs -1 percent).

The agricultural sector went up 0.9 percent, in line with the first figure but below a 1.4 percent growth in the prior quarter.

Industrial production tumbled 0.7 percent, compared to a 0.5 percent fall in the previous release but better than a 1.4 percent contraction in the second quarter. Production was mostly affected by mining (-10.7 percent vs -8.2 percent), due to lower output from oil (-12.2 percent vs -8 percent); construction (-1.4 percent vs -3.7 percent); utilities (-0.6 percent vs -0.7 percent). Meantime, the manufacturing sector rose at a faster pace (3.2 percent vs 2.1 percent).

On a quarterly basis, the economy contracted 0.3 percent, worse than a preliminary estimate of a 0.2 percent decrease, and compared to a downwardly revised 0.3 percent gain in the second quarter. It was the first contraction since the fourth quarter of 2015.

Mexico GDP Growth Revised Down to 1.5% in Q3

INEGI | Luisa Carvalho |
11/24/2017 3:53:52 PM