Strong manufacturing is leading the acceleration of growth in Mexico

Mexico's IP increased 0.1% m/m sa on April due to strong (and surprising) performance in manufacturing (2.0% m/m sa) partially offset by the expected strong decline in mining (-3.6%) and a flat performance in the construction sector. In annual terms, IP increased 1.1% y/y with manufacturing expanding 3.7% y/y.

After this report, we expect the GDP proxy for April to increase 0.5% m/m sa setting our GDP tracker for Q2 at 0.9% q/q sa, exactly at our forecast. In that sense, today's print is in line with our view of a stronger Q2 and a 2.6% y/y GDP expansion for the whole 2015. said Barclays 

Mexican manufacturing will do well, providing support for better growth in the coming quarters. On the other hand, domestic drags embedded in oil production and construction will remain probably during the rest of 2015 and part of 2016, adds Barclays