A recent rise in Mexico's manufacturing sector sentiment is at an eight-month high, indicating an expanding Mexican economy and competitive manufacturing edge.
According to the Daily Mail, the HSBC Purchasing Managers' Index survey, compiled by private data vendor Markit, lists Mexico's current manufacturing index at 52.6, marking the highest sector sentiment in eight months. While anything below a 50 signals contraction, a number above means expansion and probable economic growth. The PMI is made up of five sub-categories: output, employment, suppliers' delivery times, tracking changes in new orders and delivery times and stocks of raw materials and finished goods.
As growth in Mexico continues, experts expect that the economy will expand 2.5 percent just this year. While Brazil is still considered to be one place ahead as Latin America's No. 1 economy, the country's manufacturing activity lagged in comparison.
Brazil is not the only country experiencing a lack of manufacturing growth, the Gulf Times reports. Recent factory activity has also not fared well in much of Asia and Europe, indicating slow global economic growth as a whole. China's PMI score stayed at 51.1, barely over the line of expansion, while Britain's manufacturing sector grew at the slowest rate in 17 months. Even neighboring Canada and the U.S. saw an expansion decline, leaving Mexico as the only industry player to see a significant PMI increase.
Significant foreign investment and manufacturing in Mexico has bolstered a large part of this enduring economic growth, creating many offshoring advantages. Paired with recent infrastructure initiatives and growing free trade agreements, Mexico's economic developments point to a prosperous future for the country.