- The industrial sector is expected to be less dynamic in the second half of 2022, as it shows signs of weakening, following signs of weakening, and following expectations of lower U.S. demand.

Through this press release, CAINTRA warns of the lower dynamism expected for the industrial sector in the second half of 2022. industrial sector in the second half of 2022, as the main indicators of the Mexican industry are beginning to show signs of weakening and the Mexican industry indicators are beginning to show signs of weakening and the expectation of lower demand from the United States has increased. demand from the United States has increased. This is in response to global pressures that are not letting up. still not relenting.

First, we note that Mexico's manufacturing orders index has registered a monthly decline of -3% in June. recorded a monthly decline of -3% in June and, in addition, the country's industrial activity recorded a monthly advance of only 0.08% in May. activity recorded a monthly advance of only 0.08% during May. Although orders are still in the expansion phase Although orders are still in an expansion phase, signs of weakening are beginning to appear in the operation of the Mexican Mexican industry, which is yielding to pressures such as high inflation, the slow recovery of supply chains, the rise in supply chain recovery, rising interest rates, etc.

However, the main concern is the expectation of lower external demand from the United States, Mexico's main trading partner. the United States, Mexico's main trading partner. According to forecasts from U.S. agencies According to forecasts from U.S. agencies, imports from the neighboring country will slow to 0% in the last quarter of 2022, to register a decline of -1% in the second quarter of 2022. quarter of 2022, to register a decline of -1% in the first quarter of 2023. Estimating a drag on Mexican industry, as the United States is the destination of 84% of Mexico's manufacturing exports. of Mexico's manufacturing exports (see attached chart).

It is therefore necessary to take measures to cushion the impact that this will have on the Mexican economy, as industry is one of its pillars. Mexican economy, since industry is one of its pillars. In particular, the industrialists of Nuevo Leon We are calling for the protection of manufacturing SMEs in the face of the coming slowdown and the increase in interest rates that will and the increase in interest rates that seeks to curb inflation. This through greater financing and better credit financing and better credit conditions such as competitive rates, longer payment terms, reduced requirements and collateral payment terms, reduced requirements and guarantees, among others.

Let us not forget that, if the industry weakens, there will be strong repercussions on Mexico's economic and social development. Mexico's economic and social development. It is essential to strengthen the sector, especially SMEs, so that Mexican society will not suffer the consequences in the near future. Mexican society will not suffer the consequences in the near future.

CAINTRA Nuevo León