FX.co ★ Mexico Manufacturing PMI Rises For Second Month

Mexico's manufacturing sector expanded in March amid back-to-back increases in new orders and rising employment, preliminary survey results from S&P Global showed Monday.

The purchasing managers' index, or PMI, for the manufacturing sector was unchanged from the previous month at 51.0 in March. A reading below 50 signals decline in activity in the sector.

Higher material and transportation costs led to further increase in input prices.

However, the rate of inflation eased to the weakest in a year-and-a-half as companies noted lower prices for items such as oil and an improvement in the MXN/USD exchange rate.

"With input costs rising at the weakest rate in a year-and-half, amid reduced pressure on supply chains, companies stepped up input purchasing in March," Pollyanna De Lima, economics associate director at S&P Global Market Intelligence, said.

"Factory gate charges were unchanged in March as competitive conditions, input substitution and lower prices for some inputs stopped firms from hiking their charges."

Business confidence improved as firms generally forecast contained price pressures and new business growth.

Further, innovation, new product releases and marketing initiatives underpinned optimism surrounding the year-ahead outlook for output.