“After a March with concerning indicators, manufacturing in Nuevo León has taken a surprising turn in April, as revealed by the April 2024 Manufacturing Economic Expectations report from the Nuevo León Transformation Industry Chamber (Caintra).
All indicators surged into expansion territory, marking a significant resurgence in the local industry.
The new orders index led the advancement, rising to 56.0 points, representing growth supported by a notable increase in the physical production volume, up by five units compared to the previous month, reaching 57.0 points.
One of the highlights in the report is the performance in foreign trade. Exports reached 51.3 points, consolidating their second consecutive month in the expansion zone, while imports, after 5 months, also managed to enter positive territory, standing at 51.6 points. This signifies increased external demand for products manufactured in Nuevo León, thus boosting the local economy.
Additionally, capacity utilization increased to 54.6 points, reflecting a rise in industrial activity, while job creation remained robust with an indicator of 51.6 points, indicating sustained growth in the labor sector.”
Despite this resurgence, not all news is good. The report indicates that the political landscape remains a significant obstacle for 41% of companies. The shortage of skilled personnel was identified as the second obstacle, hindering operations for 39%, marking its third consecutive month of increase.
The report also highlighted that weak economic activity affected 29% of companies, followed by insecurity which hindered 26% of them. Additionally, inflation in raw materials, exchange rate volatility, and lower external demand represented obstacles for around 20% of companies.
On the other hand, 31% of companies chose to invest in machinery and equipment during April, thus continuing an upward trend for the third consecutive month, surpassing 30%.
Despite the challenges, optimism prevails in the region. Nuevo León’s manufacturing industry appears to be on track for a solid recovery, demonstrating its ability to adapt and thrive in challenging times.
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