Mexico's economic activity advanced 1% in October compared to the previous month. According to data published this Monday by the National Institute of Statistics and Geography (INEGI), the annual growth rate in October was 1.6%, exceeding analysts' estimates. This improvement is attributed to the recovery in the services sector, which showed an annual increase of 2.5%, and a rise in primary activities by 11.8%, although their impact on GDP is smaller. However, the industrial sector continues to raise concerns. By component, compared to September, primary activities rose by 1.4%; tertiary activities by 1.2%; and secondary activities by 0.7%. Gabriela Siller, director of analysis at Banco Base, highlighted that this morning the Monthly Indicator of Opportune Manufacturing Activity (IMOAM) for November was published, which estimates a 1.83% annual decrease in manufacturing activity. Meanwhile, economists at Banamex point out that factors such as the slowdown in the U.S. economy, the impact of uncertainty on investment, and the weaker dynamism of the labor market and remittances 'allow us to foresee that the growth of the Mexican economy remained modest in the last two months of the year.' This financial institution projects that Gross Domestic Product (GDP) growth for the end of this year will be 0.2%, slightly below the consensus according to the latest Citi survey, which points to 0.4% growth. Internally, mining and manufacturing fell by 0.7% and 1.4%, respectively. During the tenth month, industrial activity advanced only 0.7% compared to the previous year, marking three consecutive months of decline.
