Gross fixed investment in Mexico up 4.4 pct in July

2020-10-07 04:59

Already collect

MEXICO CITY, Oct. 6 (Xinhua) -- Gross fixed investment in Mexico increased 4.4 percent in July compared to the previous month, the second monthly increase in a row, the National Statistics and Geography Institute (Inegi) said Tuesday.

The increase was driven by the purchase of machinery and equipment, according to Inegi.

Seasonally adjusted figures showed the purchase of machinery and equipment by companies operating in Mexico grew by 11.1 percent compared to June, while the same purchases by the construction sector rose by 1.1 percent compared to the previous month.

However, compared to the same period last year, the indicator plunged 21.2 percent in July, for an accumulated drop of 21.4 percent between January and July of this year, the autonomous statistics agency said.

In a separate report, the Monex Financial Group noted that despite the positive monthly outcome, investment flow was limited to the purchase of machinery and equipment.

"Given this situation, the announcement of 32 infrastructure investment projects that the federal government made yesterday along with representatives of the private sector is of great importance," Monex said.

Mexico's government on Monday signed an agreement with business leaders to promote a total of 39 infrastructure projects (32 new and seven already under construction), representing nearly 14 billion U.S. dollars in investment to spur economic recovery.

Since June 1, Mexico has gradually reactivated some sectors of the economy that had been idled since the end of March to prevent the spread of the novel coronavirus (COVID-19).

The International Monetary Fund has forecast a 10.5 percent contraction in Mexico's economy in 2020 due to the pandemic.
Add comments

Latest comments

Latest News
News Most Viewed