Vehicle production in Mexico, which more than doubled in June from year-earlier levels, slowed in July to record a 65% increase over July last year, local auto association AMIA reported. Total production was 180,083 units with exports of 143,521.
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Most of Mexico’s output heads north [under NAFTA – ed] and exports to the US, which takes 80% of all Mexican exports, were up 58% year on year.
Separately, Mexico’s national statistics agency said gross fixed investment, which is a measure of spending on machinery, equipment and new construction, rose 1.13% in May from April, its sharpest increase since November.
Mexico hopes increasing US demand for manufactured goods like appliances, cars and aircraft parts will help its economy recover.
While local industry has clocked several months of growth this year thanks to strong exports, there are concerns that a slowdown in the US and weak domestic demand could drag on the recovery in Latin America’s second largest economy.
“The strength of exports continues to explain the rhythm of increased production,” said AMIA. “However, the internal market continues to be depressed.”
