The latest measure of Mexican economic activity published by the Mexican Institute for Statistics and Geography demonstrated strong growth. Economic activity rose 0.45 percent in May 2013, which is three times the average month-to-month increase measured from January 2012 until the present. The indicator measures GDP performance segmented by industry. Services lead the way in index value, followed closely by manufacturing. Though agriculture lags, its overall contribution to the Mexican economy is much less than the services and manufacturing sectors. This is because the Mexican economy is driven largely by consumer spending.
Manufacturing in Mexico experienced its largest growth since June 2012 in May 2013. Manufacturing makes up 36 percent of Mexico's GDP, according to Market Realist, so improvements in its performance have significant effects on the economy of the country overall. As the U.S. economy recovers, manufacturing in Mexico is increasing. This is in part because many American companies are choosing to locate their manufacturing operations in the country for a variety of reasons. Offshore manufacturing can reduce manufacturing costs for American companies that choose to engage in it.
The Offshore Group: You Manufacture ... We Do The Rest