Overview of the Situation in Nuevo León
Monterrey, NL. In May, the indicators of Caintra Nuevo León’s Economic Expectations Survey showed improvement compared to the previous month. However, most remain below the expansion threshold, primarily due to the political landscape.
Key Indicators and Changes
- New orders index increased from 45.06 points in April to 49.23 points in May.
- Utilization rate rose from 44.83 points in April to 49 points in May.
- Inventory levels remained near 49 points, still in contraction territory.
Export and Import Performance
Regarding trade, exports reached 45.27 points, an increase of 1.76 percentage points from April. Imports also advanced by 1.99 percentage points, standing at 44.89 points in May.
This trend allowed the volume of physical production to exit contraction and enter expansion, reaching 50.65 points.
Price Indicators
Both product and raw material prices remained in the expansion zone, albeit with a slight decrease from April, at 51.04 and 58.21 points, respectively.
Factors Affecting Business Performance
The political climate has been the main obstacle for six consecutive months, according to half of the surveyed companies.
- 42.5% of respondents perceived weak economic activity.
- 33.3% cited lower external demand as a challenge.
- One-third of the companies reported a shortage of skilled personnel.
Investment Trends Among Participating Companies
Companies involved in the survey are asked if they made investments in machinery, equipment, or construction. In May of the previous year, 34% reported investing, which dropped to 25% in May of this year.
Key Questions and Answers
- What is the overall trend in Nuevo León’s industry? Despite improvements in May, cautiousness persists as most indicators remain below the expansion threshold.
- What are the key changes in May’s indicators? New orders and utilization rates increased, while inventory levels remained near contraction.
- How have exports and imports performed? Both sectors showed growth, helping the volume of production to transition from contraction to expansion.
- What is the status of prices? Product and raw material prices are in expansion, though slightly lower than in April.
- What factors are hindering business performance? The political climate, weak economic activity, lower external demand, and a shortage of skilled personnel are the main challenges.
- What is the investment trend among participating companies? Investment in machinery, equipment, and construction has decreased from 34% to 25% over the past year.
