Mexico's November Industrial Output Unchanged; U.S. Slowdown Seen Hitting Sector Ahead

Mexican industrial output was unchanged in November from October but rose 3.2% year-over-year, the national statistics agency said on Wednesday, as economists expect an economic slowdown in the United States to affect the sector ahead, Reuters reported. Statistics agency INEGI said in a statement that higher construction and utilities output boosted industrial production in the month, but ended up offset by a drop in mining and manufacturing. Jason Tuvey, a senior emerging markets economist at Capital Economics, said the latest data came in as he expects Mexico's industry to be hit by an economic deceleration in the U.S. in the near future. "More timely survey indicators have continued to hold up well, but we think that a looming recession in the U.S. will take its toll on industry over the next few quarters," Tuvey said in a note to clients. Andres Abadia, chief Latin America economist at Pantheon Macroeconomics, said the November figure was surprisingly resilient due to improving construction activity, but also projected difficult months ahead. Read more.