Mexico Business Confidence Improves With Peso and Easing Covid Restrictions

Mexican business confidence improved to its best level in seven months in October. Confidence grew as the peso improved, easing of coronavirus lockdown restrictions and ahead of the US Presidential elections, Mexico’s largest trading partner.

Mexico City Financial

Seasonally adjusted manufacturing confidence index in Mexico rose to 41.5 in October of 2020 from an upwardly revised 40.7 in September. It was the highest reading in seven months.

Data Breakdown

  • Sentiment improved regarding the country’s situation to 32.6 vs 32.3 in September
  • Company’s situation (43.1 vs 41.4);
  • Company investment (25.1 vs 23.8).
  • Expectations over Mexicos future economic situation (50.3 vs 50.1); 
  • Company’s future situation (57.5 vs 56.7) strengthened.

The Peso has steadily improved since falling over 25 in May to 21 in November against the US Dollar

MXN W 10 30 2020

Source: Instituto Nacional de Estadística y Geografía (INEGI)

From The TradersCommunity Research Desk