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    Economic Expectations in Nuevo Leon's Manufacturing Sector

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    June 21, 2023

    - A 24% of companies indicated that weak economic activity was a hindrance to their optimal their optimal development during the month of May.

    - Exchange rate volatility is reported by 22% of companies as an obstacle to exports. as an obstacle to exports.

    Manufacturing in Nuevo León once again accelerated its growth rate during the month of May, based on the responses of the companies that participate in the survey of the based on the responses of companies participating in CAINTRA's economic expectations indicator survey. CAINTRA's economic expectations survey. However, only exports are below the expansion threshold. below the expansion threshold.

    In detail, the new orders index increased by 6 units, reaching 58.2 points, while the physical volume of production followed this upward trend, reaching 58.7 points. points. Both indicators recorded five consecutive months of expansion, reflecting solid activity in the manufacturing sector. activity in the manufacturing sector.

    In addition, increased activity is reflected in higher capacity utilization and the accumulation of inventories of inputs and finished products. inventories of inputs and finished products. In fact, the capacity utilization index rose from 52 to 56.2 points, while inventories reached 53.3 points. increased from 52 to 56.2 points, while inventories reached 53.3 points. This This performance is also reflected in higher imports, which are above the expansion threshold for the fourth consecutive month. the expansion threshold for the fourth consecutive month.

    With respect to input prices, a lower percentage of companies report this as an obstacle, reaching 20%, compared to 30% at the beginning of the year. 20%, compared to 30% at the beginning of the year. This is also reflected in the raw materials This is also reflected in the raw materials and product price indices, which, while continuing to expand, are trending downward. are also reflected in the raw materials and product price indices, which, while still expanding, are on a downward trend.

    In contrast to previous indicators, exports continued below the expansion threshold for the third consecutive month, registering 48.0 points. expansion threshold for the third consecutive month, registering 48.0 points. This situation is This situation is coupled with an increase in companies indicating that exchange rate volatility is an obstacle, reported by 22% of companies. exchange rate is an obstacle, reported by 22% of them.

    With respect to other factors hindering companies, once again the shortage of trained personnel remained the main challenge for industry in Nuevo León. trained personnel remained the main challenge for Nuevo León's industry, affecting the 40% of organizations.

    Secondly, the political landscape was mentioned by 28% of the companies as a limiting factor for their performance. companies as a limiting factor for their performance. In turn, 24% of the companies indicated that weak economic activity was an obstacle to their optimal development during the month. that weak economic activity was an obstacle to their optimal development during the month of May. May.

    Finally, 20% of companies experienced negative effects due to insecurity, and 15% reported that lower external demand hindered their optimal performance. 15% reported that lower external demand hindered their optimal performance.

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