Construction Activity Weakens Further
Construction activity in Mexico dropped 1.4 percent in November compared to October, the largest monthly drop since a 2.5 percent decline in May 2015. On a year-earlier basis, not seasonally adjusted, output in the sector dropped 1.2 percent after an increase of 1.9 percent for the year ending in October. The sector’s momentum has softened and thus will continue to act as a drag on the overall industrial production index. This was the weakest year-over-year reading for this sector since this sector came out of recession back in May 2014.
Mining: In a (Bad) Class of its Own
In November, output in the sector dropped 0.5 percent, seasonally adjusted. On a year earlier basis, not seasonally adjusted, output in this sector dropped 4.3 percent. This was the 18th consecutive year-over-year decline for the index, and while the index has moderated its drop compared to late 2014 and early 2015 it is still struggling to fulfill its promise.
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