Mexico's economy slows less than expected in third quarter
EWG•Mexico's economy grew 0.9% in the third quarter, down from 1.4% in the second quarter but above economists' 0.7% forecast. Year-on-year growth was 3.2%, compared with expectations for 2.5%.
1. Quarterly growth
Mexico's economy grew 0.9% in the three months through September, according to a preliminary estimate from national statistics agency INEGI. Growth slowed from 1.4% in April-June but exceeded economists' 0.7% forecast.
2. Sector performance
Services expanded 1.1%, while manufacturing and construction, part of the secondary sector, rose 0.8%. Primary activities, including farming, fishing and mining, declined 0.4%. The economy grew 3.2% from a year earlier, above economists' 2.5% expectation.
3. Rate outlook
Analysts said continued growth has weakened the case for monetary easing ahead of Banxico's policy decision next week. Andres Abadia said the recovery was reinforcing expectations that the central bank will keep its benchmark interest rate at 6.50% through the first half of 2027.
