• DECREASE: Gross fixed investment recorded its worst monthly decline since February 2014 by falling down 1.46% in October 2019 according to new figures by Mexican statistics agency (INEGI). Overall, the decline is explained mostly due to weakness in transportation and construction.
• SECTORS: Investment in machinery and equipment contracted by 1.8% while construction did it by 1.7%. Particularly, analysts noted the impact of a big reduction in domestic and imported transportation equipment due to the 2019 GM strike along with maintenance at other companies.
• DEMAND: “In line with our expectation, this month’s figures were impacted by shocks in the auto sector…In our view, today’s report confirms that investment remains as the weakest component within aggregate demand”, according to an analysits at Banorte Casa de Bolsa.
• NEWS: Analysts see some optimism in the new future both thanks to the ratification of the new US-Mexico-Canada Agreement (USMCA), the lowering in China-US tensions along with the federal government’s release of an infrastructure plan back in November.
