Manufacturing orders continues to expand in October 2022

The National Institute of Statistics and Geography (INEGI) and the Bank of Mexico reported that the Manufacturing Orders Indicator (IPM) of October 2022 remained above the threshold of 50 points for the twenty seventh consecutive month.

In October 2022, the metal products, machinery, equipment and furniture subsector increased 0.5 points.

The information refers that the IPM registered a monthly progress with seasonally adjusted data of 0.48 points and was located at 51.9. Within it, with seasonally adjusted data, monthly increases were reported in the components corresponding to the expected orders, the opportunities in the delivery of goods by suppliers and inventories of goods.

Meanwhile, the components related to the expected production and the employed personnel presented similar levels to those of the previous month.

With original figures, in the reference month, the IPM presented an annual reduction of 0.4 points and stood at 52.9 points. Regarding its components, three of the five aggregates that make up the IPM showed annual falls, the remaining two increased.

Indicator of orders by subsectors of activity

In October 2022, the Food, Beverage and Tobacco aggregate registered an annual drop of 0.3 points with original figures; that of Petroleum and Coal Derivatives, Chemical, Plastic and Rubber Industry, 1.6 points; that of Non-Metallic Minerals and Basic Metallics, 2.5 points; that of Computer Equipment, Electronic Accessories and Electrical Devices, 0.1 points.

Likewise, Transportation Equipment increased 2.2 points; Metal Products, Machinery, Equipment and Furniture, 0.5 points; and Textiles, Apparel, Leather, Wood, Paper and Others, decreased 1.3 points.

It is important to note that the IPM will have an impact in the following months when all orders convert into effective production. In addition, the IPM incorporates variables similar to those of the Purchasing Managers Index (PMI) prepared by the Institute for Supply Management (ISM) in the United States.

The IMP is built with the results of the Monthly Business Opinion Survey (EMOE). These allow us to know, almost immediately after the end of the reference month, the expectations and perception of business managers about the behavior of the manufacturing sector in Mexico.