The National Institute of Statistics and Geography (Inegi) anticipated a 0.4% increase in Mexican economic activity at an annual rate in October 2024 , according to the Timely Indicator of Economic Activity (IOAE), which would reflect a slight increase specifically in services and commerce .
According to the report, tertiary economic activities, which include services such as trade, transportation and communications, education and health, are expected to increase by 1.1% by October of this year.
Meanwhile, secondary activities , which include manufacturing and construction, are expected to decline by 1.3 percent annually .
For the tenth month of the year, the IOAE estimates that the Global Indicator of Economic Activity (IGAE) will fall by 0.1% compared to last September. In secondary and tertiary activities, Inegi estimated that there will be no monthly variation.
These figures follow a 4.76% increase in annual inflation in Mexico in October, after two months of decline. They also follow the fact that the Board of Governors of the Bank of Mexico (Banxico) applied a new 25 basis point cut to its reference rate, leaving it at a level of 10.25 percent .
This resolution by Banxico was taken after the Federal Reserve System (Fed) , the central bank of the United States, applied a reduction of a quarter of a percentage point to its rate, leaving it in a range of 4.50 to 4.75 percent .
In turn, the Monex Financial Group pointed out that economic activity in Mexico faces various risks associated with inflation levels, since this can weaken domestic consumption and cause a slowdown in the construction sector.
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