Mexico Contract Manufacturing Continues Growth
According to a recent survey conducted by Markit Economics and HSBC Bank, the Mexico Contract Manufacturing sector has kept up its steady expansive pace for May, 2012. While down slightly from April (56.3), May’s purchasing managers’ index (PMI) was a robust 55.2, a clear indicator for ongoing growth. Any PMI ranking above 50 reveals industrial sector expansion while numbers below 50 may suggest decline.
The recent survey also indicated other important patterns for Mexico’s contract manufacturing output. For example, Mexican manufacturers enjoyed growth increases at the fastest clip from a year ago, April 2011, likely led by greater overall demand and by bringing in new clients. Order growth was further reflected in manufacturing output for May 2012, though the rate of growth diminished later in the month to a sluggish three month low. Finally, employment in Mexico manufacturing expanded visibly in May. While input prices increased in May, companies passed on more costs to clients by raising output prices.