Mexico IGAE index moving up despite a lackluster industrial sector

Mexico's GDP proxy (IGAE index) increased 2.1% y/y in April as the economy expanded 0.7% m/m due to positive performance in the primary and services sectors. This last one, most likely pushed by the strong manufacturing performance observed in this month (2.0% m/m sa).

"The print comes in line with our Q2 GDP forecast of 0.9% q/q sa and a 2.6% y/y expansion for the whole year." notes Barclays 

May data are still mixed: car production declined 5.7% m/m sa, while ANTAD same store sales and oil production increased 1.9% and 1.5% m/m sa, respectively. In that sense, trade date due next June 26 should confirm if the external demand will continue providing support to the economy, while the domestic components (construction and oil production) stabilize.