Just three years ago, Mexico was on the comeback trail as more U.S. manufacturers looked to our southern neighbor for labor cost savings that were starting to erode in China. Mexican states competed heavily for foreign investment with “unprecedented” financial incentives, according to a report from www.mexicogov.org released in March 2010.
Three years later, the HSBC Purchasing Managers’ Index shows that manufacturing production in Mexico for March 2013 increased at its weakest pace since August 2011, with the PMI falling to 52.2 in March. Both the rates of output and new order growth eased in March after a particularly weak February with a PMI of 53.4.
According to the HSBC PMI report, the amount of new work received by manufacturers rose in March, “with one-in-four firms reporting an increase since February.” Greater demand was largely cited by respondents to the survey. “Overall, new order growth was solid, but having slowed for the third month running, was the weakest since January 2012,” said the report....