Mexico April factory index at highest since 2006

MEXICO CITY, May 3 (BestGrowthStock) – A Mexican manufacturing
sector index from April rose to its highest in almost 3-1/2
years, pointing to further expansion as foreign demand supports
exporters, an industry group said on Monday.

The IMEF factory index rose to 54.6 in April from a revised
downward 53.7 in March, the Mexican Institute of Financial
Executives, or IMEF, said in a report. The last time the index
had such a high reading was in November 2006, at 55.4 points.

Readings of 50 and above signal likely expansion in
subsequent months. The index first rose above that level last
July.

Last week the central bank revised upward its outlook for
growth this year, expecting Mexico’s economy to expand between
4 percent and 5 percent in 2010 as Latin America’s second
largest economy recovers from a deep recession.

“The growing dynamism of imports, the propensity of
consumption and retail sales in the United States, suggests
that the demand in the country … will continue to fuel the
rebound in Mexican manufacturing,” the IMEF said in a
statement.

The United States buys around 80 percent of Mexican
exports.

The IMEF’s survey is similar to the Institute for Supply
Management’s survey of factory activity in the United States.

The IMEF’s non-manufacturing index fell to 54.1 from 55.1
in the prior month, pointing to a weaker recovery in Mexico’s
domestic economy as consumer confidence remains low, the group
said.

Stock Analysis
(Reporting by Michael O’Boyle; Editing by Diane Craft)

Mexico April factory index at highest since 2006