ECONOMY: Finance Minister raises year-end peso forecast to 12.80/US$ v. previous 13.80 after recent rally in currency strength

ECONOMY: Finance Minister raises 2010 GDP growth expansion forecast to 4.1% from 3.9% on higher consumer demand

Top Story Universal: Education Ministry Grants Teacher Union MXN150mln - Congressional audit finds irregular payments to union officials

Top Story Jornada: Narco Blockades In Tamaulipas - In 2 cities, gunmen blockade streets, snarl traffic, shoot it out with military forces

Top Story Reforma: Reynosa Slammed By Shootings, Blockades - Tamaulipas border convulsed by narco-military shootouts; at least 15 dead

Top Biz Story Reforma: Mexico Gains V. Brazil - Thanks to exchange rate changes, Brazilian labor costs now 28% more expensive than Mexico

Top Story Economista: PRI Proposes SAT Autonomy - PRI bill would decouple tax authority from federal budget, Los Pinos administration

Top Story Financiero: Stocks, Peso Recover From Crisis - Since Black Monday Mar 9, 2009, Bolsa has regained 98%, peso firmest since Oct 08

Top Story Milenio: NL Shootout While Medina Stumps For Tourism - Military, narcos battle where Nuevo Leon Gov. Rodrigo Medina had visited

Top Story Cronica: Holy Week Kicks Off With 39 Murders In 6 States - Between Mon, Tue rash of narco-violence; 16 slain in Cd. Juarez

#http://ping.fm/lpONn

JANUARY CONSTRUCTION

Inegi January Construction Report

% variation, monthly (seasonally adjusted)

TOTAL -0.11% (-0.24% in Dec)
Building -5.98% (+1.528% in Dec)
Water, irrigation, sewage +4.21% (+4.64% in Dec)
Power & communications -3.21% (-6.43% in Dec)
Transportation +16.70% (-8.69% in Dec)
Petroleum, petrochem -8.40% (+6.34% in Dec)
Other +11.11% (+1.24% in Dec)

INEGI: Value of construction put in place fell 0.11% in Jan from Dec, 3rd straight monthly decline on seasonally adjusted basis

INEGI: Manufacturing Work-Hours Index up 0.85% in Jan from Dec on seasonally adjusted basis, 4th monthly gain in past 5mos

INEGI: Manufacturing index surges 1.11% in Jan from Dec on seasonally adjusted basis, highest monthly growth rate in more than 2yrs

MARKETS: FX: After strongest close since Oct 2008 at 12.4380 pesos/US$, benchmark 48hr interbank sell-rate tests 12.40, firms to 12.4343

MARKETS: FX: After strongest close since Oct 2008 at 12.4380 pesos/US$, benchmark 48hr interbank sell-rate tests 12.40, firms to 12.4343

MARKETS: STOCKS: After initial gains, Bolsa IPC index cedes to nerves, down 0.31% to 33,313.36 in first 2hrs of trade

Top Story Universal: Under Pressure, SAT Burns Contraband Clothes - Amid poverty, 5mln confiscated garments burned by customs authorities

Top Story Jornada: Durango Bloodbath, Inter-Cartel War: Govt - Interior Min Gomez Mont denies rumors army present at massacre of 10 youths

Top Story Jornada: Durango Bloodbath, Inter-Cartel War: Govt - Interior Min Gomez Mont denies rumors army present at massacre of 10 youths

Top Story Jornada: Durango Bloodbath, Inter-Cartel War: Govt - Interior Min Gomez Mont denies rumors army present at massacre of 10 youths

Top Story Reforma: Narcos Halt Missionaries - Churches have suspended Holy Week visits to villages in three northern states amid violence

Top Biz Story Reforma: Craft Brewers Find Niche - Beer Factory, Cervecería Minerva, Primus, Cucapá and six other companies have entered mkt

Top Story Economista: Mexico, US Accelerate Bilateral Trade - Mexico-US exports rose 29.2% in Jan, faster than to other major markets

Top Story Financiero: Global Recovery Fragile - Canadian envoy Peter Kent says trade protectionism, over-regulation could slow growth

Top Story Milenio: I'll Seek Pardon In Mexico: Corcuera - Head of Legionnaires Of Christ apologizes for founder Marcial Muriel's sex abuse

Top Story Cronica: Army Held TEC 5hrs, PGR Has Video - In fatal shooting of university students, military laid siege to campus for 5hrs

Top Story Universal: Urgent Reforms Stall In Senate - With few bills passed in spring, lawmakers vote to work through Easter Week holiday

Top Story Jornada: Assassins Kill 10 in Durango - Youths between ages of 13 and 19 gunned down in mountains in apparent narco attack

Top Story Reforma: Crisis Compels Outward Investment - In 2009, weak economy led Mexican FDI outflows to jump 560%, highest rise on record

Top Biz Story Reforma: Mexico Neglects New Investment - Mexico lacks fiscal incentives to attract new pharmaceutical research, production

Top Story Economista: Pemex Lags Energy Firms - Among 10 largest petroleum concerns, Pemex alone in raising capital through bonds to pay tax

Top Story Financiero: Reforms Alone Insufficient - UN ECLAC says structural reforms must be backed by policies to stimulate internal growth

Top Story Cronica: They Worked In TEC Lab, Left And Were Slain - Parents of 2 university students were stunned to find children in morgue

INEGI: EMPLOYMENT: Urban unemployment rate falls to 6.41% in Feb v. 6.84% in Jan on seasonally adjusted basis; peaked in May 09 at 7.29%

INEGI: EMPLOYMENT: Natl open unemployment rate falls to 5.21% in Feb v. 5.52% in Jan on seasonally adjusted basis; peaked in May 09 at 6.06%

MARKETS: FX: Benchmark 48hr interbank sell-rate firms 0.88% to 12.6015 pesos/US$; rebound from yesterday's market nerves

MARKETS: Stocks: Bolsa IPC index opens up 0.34% to 33,272.36 on positive US jobs data, nervous eye Portugal

Top Story Universal: Antibiotics To Require Prescription - Halt to over-the-counter sales aimed at preventing self-medication

Top Story Jornada: Spain Snares Mexican Money Launderers - Suspicions of taxi driver leads to arrest of band of narco bankers in Madrid

Top Story Reforma: 'We Are Not Killers' - Army says death of TEC students isolated incident; soldiers trained to prevent collateral deaths

Top Biz Story Reforma: Satellite System Broken, Obsolete - Govt, business satellite provider SatMex bankrupt, needs $1.1bln to continue

Top Story Economista: Homebuilders Reject Infonavit Reform - Companies say bill to reduce housing fund's payroll tax would slam sector

Top Story Financiero: European Financial Stable Endangered - Greek crisis now threatens euro zone, European Commission calls for bailout

Top Story Milenio: Narco, 'Ridiculous Minority': Calderon - Drug traffickers petty criminals riding fear, corruption; govt must not cede

Top Story Cronica: Kids Hit With Grenade: Rector - Head of TEC de Monterrey univ. said grenade killed students slain in narco-army crossfire

INEGI: Wholesale sales plunge -14.0% in Jan on m/m seasonally adj, annualized basis; annual trend line falls to -1.4% from +2.1% in Dec

INEGI: Retail sales plunge -7.5% in Jan on m/m seasonally adj, annualized basis; annual trend line falls to +1.5% from +2.9% in Dec

MARKETS: FX: Benchmark 48hr interbank sell-rate at 12.6488 pesos/US$, 0.4% weaker amid concerns on Greece, India

MARKETS: Stocks: Mexican Bolsa IPC index opens up 0.28% to 33,115.51; looking to consolidate gains amid growing optimism

Top Story Universal: Mexico Cannot Go It Alone Against Narco: DefMin - Gen. Benito Medina says country needs international cooperation

Top Story Jornada: US Approves Scaled-Down Health Reform - US House of Representatives passes bill to grant millions of Americans coverage

Top Biz Story Reforma: In-Store Banks Spread - As of Jun, supermarkets, gas stations, convenience stores, more to offer banking services

COREX: Natural gas burning story Top Reform Story for Monday

Top Biz Story Reforma: Pemex Burns Millions - Plans to reduce natural gas waste fails; $1.3bln lost to burn-off in 2009 v. $920mln in 2008

Top Story Economista: Fiscal Reform To Seek Consensus - FinMin Cordero says consulting with all stakeholders to design new tax proposal

Top Story Banxico: Better Growth Prospects: Banxico - Central bank ups 2010 GDP forecast by 0.8% from Jan outlook to range of 4% to 5%

Top Story Milenio: Monterrey: Another Civilian Killed In Crossfire - Assassination attempt on Santa Catarina police chief kills bystander

Top Story Cronica: Obama's Historic Triumph: Healthcare Reform Approved - US president at brink of winning watered-down healthcare reform

Mexico Productivity Tumbles Compared With US

Mexican output lost 31.5% of productivity vis-a-vis the US in the period 1960-2005, a new report from the Inter-American Development Bank said. Only 15 nations fared worse in study, and in Latin America, only Nicaragua (-63.0%), Honduras (-47.9%), Venezuela (-46.9%), El Salvador (-41.9%), Paraguay (-36.5%), Costa Rica (-36.2%), and Argentina (-35.5%).

In comparison, China rose 219.4%, Hong Kong 136.1%, Korea 40.5%, and India 24.0%.

PRESS RELEASE

Stagnant productivity causing poor growth in Latin America and the Caribbean
Latest edition of IDB flagship publication says improving efficiency in the service sector is vital to speed up economic progress and reduce poverty

CANCÚN, Mexico – Low productivity growth is the main reason most countries in Latin America and the Caribbean have lagged growth rates of both advanced countries and peer countries in East Asia, according to a study by the Inter-American Development Bank (IDB).

The study, which analyzed how efficiently nations are utilizing their productive resources, looked into productivity gains and losses, relative to the United States, for a sample of 76 countries, including 17 from Latin America and the Caribbean. Chile was the only country in the region to increase its productivity against the United States since 1960.

Half of the 20 worst performing countries in terms of productivity in the sample are from Latin America and the Caribbean (see graph and table below).

Breaking against the commonly held notion that the region’s growth suffers from insufficient investment, the study shows that Latin America and the Caribbean could greatly accelerate their economic growth and narrow the income per capita gap against industrialized nations with policies that promote a better use of existing resources in the economy.

A typical Latin American country could have increased income per capita by 54 percent since 1960 if its productivity had grown like the rest of the world during the period. Income per capita in this typical country would almost double if its productivity was close to its full potential.

“More than additional investments, countries in the region need to make better use of the existing stock of physical and human capital,” said IDB economist Carmen Pagés-Serra, who coordinated a team of researchers for the upcoming IDB book: The Age of Productivity: Transforming Economies from the Bottom Up.

“There is a huge, untapped opportunity for policymakers in the region to invest in reforms and sensible policies that can allow the region to quickly catch up with other regions of the world,” said Santiago Levy, Vice President of Sectors and Knowledge of the IDB.

Economic growth and income per capita in the region could dramatically improve, for example, with increased credit, simpler and better distributed tax regimes, better transportation, and a better tailored social policy to reduce labor informality. Productivity would also greatly benefit from targeted policies to provide for key public goods, such as better infra-structure and regulatory environment, to increase the efficiency of the productive sector as well as measures to foster technological innovation in the private sector.

The book, part of the series Development in the Americas, the IDB’s annual flagship publication, offers a comprehensive analysis of productivity in the region, its impact on economic growth and recommendations for policymakers on how to address the causes of low productivity.

The IDB unveiled the results of the book during an event preceding its Annual meeting in Cancun, Mexico. The Age of Productivity: Transforming Economies from the Bottom Up will be available at selected bookstores next month.

Winners and Losers

Since 1970, productivity in Latin America and the Caribbean has consistently lagged the rest of the world, a trend that has exacerbated after the debt crisis of the 1980s. The failure to catch up with developed economies has been widespread in the region.

Even though Chile was the only country in the region to increase its productivity against the United States since 1960, its gains were smaller than other developing nations such as India, Thailand and China (see graph below).

http://www.iadb.org/News/Images/Editor/image/TABLA1_Edia.jpg

Nicaragua, Honduras, Venezuela and El Salvador were the countries whose productivity decreased the most relative to the United States since 1960 and whose performance was below much poorer countries in Africa including Algeria, Uganda and Kenya (see tables at the end).

On the other hand, Panama, Brazil, the Dominican Republic and Ecuador were the countries where productivity decreased the least when compared with the United States.

The problem Is In The Service Sector

The study analyzed productivity in several sectors of the economy in the region. Agriculture is the fastest growing sector, yet its growth is still below the world average. But the bad news really lie is in the dismal performance of the service sector, which employs about 70 percent of the region’s workforce and is increasingly dragging down aggregate productivity in the region.

Latin America’s productivity growth in both industry and, particularly in services has underperformed compared to East Asian and industrial countries (see table below). This has been true both during the 1980s, when productivity in industry and services in Latin America actually decreased, and from 1990 onwards when productivity increased but at a slower pace than in the other two regions.

The case of the service sectors is the most dramatic. In this large part of the economy, productivity fell sharply during the 1980s and has remained stagnant for the last 15 years. The gap is large relative to East Asia, where productivity in services has grown by about 2.5 percent a year in the last 15 years, and also relative to high-income countries, where productivity in services has increased by about 1.4 percent a year.

http://www.iadb.org/News/Images/Editor/image/TABLA2_Edia_200.jpg

In most categories of services, productivity has been poor. Between 1990 and 2005, productivity of community, personal and government services grew only 0.7 percent compared with a productivity growth of 5 percent for mining and 4 percent for public utilities in the region. Productivity actually declined for financial services and retail and wholesale trade, falling 0.8 percent and 1 percent, respectively, during the same period.

Had productivity in the service sector grown at the pace it did in East Asia, economy wide productivity growth in the typical country of the region would have almost doubled.

New Focus on Policies

It has become commonplace for policymakers in the region to focus on boosting exports and improving the quality of tradable goods as a strategy to improve competitiveness and income levels. However, this study suggests that increasing productivity in the service sector is key for boosting economic growth in Latin America and the Caribbean in coming years.

“Given the size of its tertiary sector, the region urgently needs to implement policies to increase productivity of this industry,” said Pagés.

Chief among the reforms is to tackle the high rates of informality in this sector, which gives small firms—the vast majority of which are very inefficient— an unfair advantage in the market place against formal companies. By being informal, these small companies are shielded from the competition of better and more productive business models. These firms survive because they evade taxes, utilizing productive resources that would otherwise go to more efficient sectors of the economy.

Simplified tax regimes coupled with measures to reduce evasion and lower corporate taxes could reduce the level of informality in the economy. The study also recommends governments expand credit for companies, a move that would not only pave the way for more innovation but also help reduce the level of informality in the economy.

More tailored social policies that do not rely on the taxation of formal labor could increase incentives for companies to register their workers and contribute toward a reduction in informality. The region could boost the productivity of its manufacturing industry by promoting greater competition and better regulations in ports and airports and by making transportation more efficient and cheaper.

“A decade after conquering economic stability, Latin America and the Caribbean face the challenge of achieving faster economic growth,’’ said Pagés. “Higher productivity growth will be vital to unleash this process in years to come. Only by utilizing its resources more efficiently, will the region be able to achieve the kind of growth rates that will pave the way to lift millions out of poverty.”

http://www.iadb.org/News/Images/Editor/image/TABLA3_Edia_500.jpg
http://www.iadb.org/News/Images/Editor/image/TABLA4_Edia_500.jpg

Top Story Universal: 228 Minors Abused Every Minute In LatAm - Unicef says more kids now falling victim to sexual abuse from cyber predators

Top Story Jornada: Violence In 8 States; 30+ Dead - 2 supposed slain in Monterrey were students; crossfire killed another woman separately

Top Story Reforma: Pedophiles Should Be Tried: Pope - Benedict XVI says priests must respond to both divine and earthly justice

Top Story Milenio: Students, Not Narcos, Slain At TEC - Shootout between narcos, military killed two students at leading Mexican university

Top Story Cronica: At 16th Among Least Productive Nations - On list of 42 nations with lowest productivity, Mexico was among worst

Supply And Demand Q409

Economic supply and demand fell 1.7% on year-on-year, unadjusted basis in the fourth quarter of 2009

Demand -1.7% (100%)
Capital Formation -8.1% (16.4%)
Private Consumption -3.8% (52.3%)
Government Consumption +1.4% (8.5%)
Exports +7.3% (22.7%)

Supply -2.7% (100%)
GDP -2.3% (75.8%)
Imports -0.1% (24.2%)

Top Story Universal: US Mounts Sting In El Paso - US sweeps up Barrio Azteca gang, suspected in Juarez slaying of US consulate workers

Top Story Jornada: PAN Labor Reform Totally Favors Employers - PAN submits unscheduled labor reform bill; would limit right to strike

Top Story Reforma: Clubs To Close At 5am - Federal District mulls bill to allow clubs to remain open until 5am Thu-Sat; now must close at 3

Top Biz Story Reforma: Tradesmen To Be Hit By Cellular Suspension - More than 7mln users calculated to be freelance in trades depend on cell

Top Story Economista: Labor Reform In Congressional Hands - The ruling PAN party formally submitted bill to amend 419 of 1,010 labor laws

Top Story Financiero: Lower Revenue, Higher Pension Expenditures: IMF - Federal revenue to slow, costs to rise, leading to lower investment

Top Story Milenio: Senate Rejects Cuba Pressures - Senators rebuffed Cuban Ambassador's calls to remain mum on island's human rights record

Top Story Cronica: Eradicating Drugs In Mexico Will Take 10yrs: US - US military official says Mexico trafficking will be solved in 8-10yrs

Central Bank Keeps Rate At 4.5%

At its monthly monetary policy meeting Friday, the five-member Bank of Mexico board voted to maintain the benchmark overnight interbank interest rate at 4.5%, a move (or lack thereof) widely expected in the market.

The vote and minutes are secret in Mexico, and the public must rely on reading between the lines of the monthly bulletin.

The press release stated:

"In Mexico the economy continues recovering at a quicker rhythm than expected. In fact, the majority of the analysts have been raising their GDP growth prognostics. Nevertheless, diverse indicators of utilized capacity, private investment, and some consumer signs suggest that activity levels will continue below potential this year, even if it is at higher levels than previously thought."

READ: The economic surge in the fourth quarter of last year has not been sustained in the first quarter of this, likely due to pent-up demand and statistical effects of comparison. Mexico is still way below recovery levels and is not rushing to return.

"In line with the aforementioned, employment levels have been rising, even though they have not reached the levels seen in 2008. This situation has contributed to the moderation of salary increases."

READ: Companies are hiring again, but the ranks of the under- and unemployed are so swollen that hiring pressures have muted effect on salaries."

"The evolution of inflation is expected to continue in line with the prevision that the central bank outlined in the Q309 Addendum. This expectation is sustained by the facts that salary increases have been moderated, the exchange rate has been appreciating, and the medium- and long-term inflation expectations remain anchored, though above the goal of 3%. In the same sense, despite the improved economic performance, there do not appear to exist aggregate demand pressures. However, with the reduced slack in economic growth, the buffer against higher consumer prices feeding through from the new taxes and public-sector prices is thinning."

READ: Retailers have been forced to eat the cost of new taxes and higher gasoline prices in a relatively weak consumer environment, but economic growth could lead to pricing adjustments real quick.

"In light of the aforementioned, the board will closely watch the trajectory of inflation expectations in the medium- and long-term, as well as other indicators that could signal unexpected and generalized upward pressure on prices. This is for the purpose of being able to make adjustments to monetary policy in order to reach the 3% inflation goal toward the end of next year."

READ: As soon as we can raise rates without choking of incipient growth, we will.

BANXICO: Central bank board keeps benchmark overnight lending rate at 4.5% at monthly monetary policy meet, says aggregate demand still soft

FX: FinMin Cordero says Currency Commission may increase dollar-buys to boost foreign reserves; currently it caps auctions at $600mln/mo

AMIA: February automotive results: http://ping.fm/gMINb

February Automotive Results

Period Total Production Exports Sales To Public
Feb 2010 167,292.0 153,148.0 59,516.0
Feb 2009 107,547.0 77,833.0 61,578.0
Var. % 55.6 96.8 -3.3
Var. Absolute 59,745.0 75,315.0 -2,062.0

Jan-Feb 2010 332,350.0 267,341.0 123,580.0
Jan-Feb 2009 189,080.0 128,894.0 131,242.0
Var. % 75.8 107.4 -5.8
Var. Absolute 143,270.0 138,447.0 -7,662.0

Source: Mexican Automotive Industry Association (AMIA)

Top Story Universal: AMLO-Fox Fight Halted Sewage Works - Vital drainage projects stalled in Mexico City due to Fox, AMLO political spats

Top Story Jornada: Govt Rejects US Criticism - Interior Min Gomez rebuffs Janet Napolitana's statements that military has not helped Juarez

Top Story Reforma: More Petroleum... On Paper - New US SEC reporting rules benefit Pemex; result of new reserve estimates to be released Thu

Top Biz Story Reforma: Canada-Bound Auto Exports Surge - In first 2 months of 2010, y-o-y shipments +87.2%; Canada buys 8.1% of Mexico cars

Top Story Economista: Life Preservers For Sofoles - Federal Mortgage Society will grant MXN16bln in credit to independent home lenders

Top Story Financiero: Peso, Reserves At Best Point - Peso climbs past 12.5 FX mark while foreign reserves stand at a record $94.8bln

Top Story Milenio: Foreign Affairs Ministry: Calderon Doing Everything It Can Against Narco - Patricia Espinosa calls for more US support

Top Story Cronica: Harsh Reproaches For Juarez Case - Foreign Affairs Min Espinosa says violence in Cd. Juarez result of US drug consumption

MARKETS: FX: Benchmark 48hr interbank sell-rate closes at 12.5572; 0.21-percent firmer on day; strongest since Lehman Bros crash in Oct 2008

MARKETS: STOCKS: Mexican Bolsa IPC index closes flat at 32,578.05 on mixed signals from US data

INEGI: Industrial production fell 2.24% in Jan on a seasonally adjusted, annualized basis from Dec; for more info see: http://www.mexicowatchblog.latinintel.com/mexicointel.html

INEGI: January Industrial Production

The Inegi industrial production index fell 2.24% in January on a seasonally adjusted, annualized basis from December as manufacturing took a breather from the huge end-of-year surge that has rallied factories in recent months. At a trend rate, the IP index was still growing at a 5.32% rate, down from 8.98% in December 09 and 11.39% in November 09.

The January drawback raises question over whether the Q409 explosion in manufacturing was a temporary burst fueled by pent-up demand and lean inventories, or the beginning of a sustainable V-shaped recover. In our view, while it is not likely that the double-digit growth seen at the end of last year will be the norm, a firm recovery from the devastating 2009 contraction should continue. US automotive sales figures for February indeed augur a continuation of strength.


Inegi Industrial Production Index, Seasonally Adjusted
(2003=100)
Indices Annualized Var.
IP Trend IP Trend
Jan 09 104.53 107.01 -34.92% -16.48%
Feb 105.72 105.70 14.43% -13.73%
Mar 104.54 104.86 -12.52% -9.11%
Apr 105.48 104.51 11.31% -3.89%
May 104.06 104.55 -15.00% 0.48%
Jun 103.48 104.85 -6.56% 3.47%
Jul 106.64 105.30 43.62% 5.20%
Aug 105.80 105.87 -9.06% 6.75%
Sep 106.17 106.67 4.19% 9.48%
Oct 107.76 107.62 19.62% 11.14%
Nov 108.67 108.59 10.52% 11.39%
Dec 109.77 109.37 12.89% 8.98%
Jan 10 109.56 109.84 -2.24% 5.32%

Inegi IP Manufacturing Sub-Index, Seasonally Adjusted
(2003=100)
Indices Annualized Var.
Man. Trend Man. Trend
Jan 09 100.68 101.30 -55.35% -63.22%
Feb 101.40 100.54 8.90% -8.70%
Mar 99.60 100.08 -19.27% -5.33%
Apr 102.22 99.96 36.48% -1.41%
May 99.87 100.27 -24.33% 3.85%
Jun 99.00 100.97 -9.94% 8.63%
Jul 103.43 102.00 69.06% 12.98%
Aug 103.10 103.32 -3.76% 16.70%
Sep 104.48 105.01 17.30% 21.53%
Oct 107.01 106.88 33.18% 23.52%
Nov 109.10 108.59 26.18% 20.95%
Dec 111.97 109.83 36.50% 14.67%
Jan 10 110.45 110.57 -15.06% 8.31%

Inegi IP Construction Sub-Index, Seasonally Adjusted
(2003=100)
Indices Annualized Var.
Con. Trend Con. Trend
Jan 09 116.73 117.42 -12.94% -10.33%
Feb 116.98 116.59 2.57% -8.20%
Mar 115.85 116.01 -10.97% -5.80%
Apr 115.85 115.57 0.03% -4.44%
May 114.10 115.13 -16.75% -4.49%
Jun 116.43 114.61 27.47% -5.28%
Jul 116.52 114.01 0.93% -6.02%
Aug 113.37 113.42 -28.02% -6.10%
Sep 112.16 112.86 -12.10% -5.78%
Oct 112.35 112.35 2.12% -5.24%
Nov 112.62 111.97 2.84% -4.06%
Dec 111.45 111.73 -11.72% -2.46%
Jan 10 111.71 111.64 2.81% -1.00%

Inegi IP Power, Gas, Water Sub-Index, Seasonally Adjusted
(2003=100)
Indices Annualized Var.
PGW Trend PGW Trend
Jan 09 120.44 120.30 12.82% 7.98%
Feb 120.58 120.95 1.45% 6.73%
Mar 122.67 121.40 22.88% 4.58%
Apr 121.79 121.69 -8.24% 2.84%
May 119.73 121.93 -18.51% 2.44%
Jun 121.58 122.20 20.21% 2.64%
Jul 121.79 122.48 2.04% 2.77%
Aug 123.31 122.75 16.00% 2.78%
Sep 123.66 122.98 3.46% 2.20%
Oct 123.42 123.10 -2.21% 1.15%
Nov 122.48 123.11 -8.80% 0.10%
Dec 122.65 123.06 1.69% -0.41%
Jan 10 123.38 123.06 7.41% 0.01%

Inegi IP Mining Sub-Index, Seasonally Adjusted
(2003=100)
Indices Annualized Var.
Min. Trend Min. Trend
Jan 09 100.92 100.73 5.35% 0.57%
Feb 100.39 100.76 -6.15% 0.33%
Mar 100.53 100.80 1.67% 0.53%
Apr 101.34 100.93 10.12% 1.54%
May 101.25 101.19 -1.13% 3.12%
Jun 98.34 101.53 -29.50% 4.16%
Jul 101.32 101.89 43.04% 4.29%
Aug 102.58 102.18 16.08% 3.43%
Sep 102.83 102.37 2.92% 2.30%
Oct 102.61 102.46 -2.50% 1.04%
Nov 102.20 102.43 -4.71% -0.28%
Dec 102.00 102.35 -2.36% -1.03%
Jan 10 102.15 102.26 1.74% -1.00%

Top Story Universal: Narcos Infiltrate US Customs, Police: FBI - In 2009, more than 100 officials and 130 border security agents arrested

Top Story Jornada: PRI-AN Contrite, Want To Turnover New Leaf - Parties regret secret electoral pact, hushing public debate over scandal

Top Story Reforma: Cellular Registry Fails - Anti-crime measure to create National Mobile Phone User Registry failed; reporters faked names

Top Biz Story Reforma: Cellular Registry Problems Foreseen - Experts say new national mobile phone user registry easy to dupe

Top Story Economista: Just 44 Firms Reveal Tax Consolidation Impact - Of 132 listed companies only one-quarter reported new reporting impact

Top Story Financiero: Savings of MXN160bln In 3yrs - Nat'l Program To Reduce Public Expenditure aims to slash current spending 7-8% annually

Top Story Milenio: We're All Hurt By Mudslinging: Calderon - President calls on parties to dignify politics, regain public trust, civic life

Top Story Cronica: FGM Bets On Long-Term Governance - Interior Min Fernando Gomez M focused on stability, not short-term electoral spats

Carlos Slim claimed the top spot on Forbes annual list of billionaires with a net worth rising $18.5 bln from the previous list to $53.5 bln

Mexico may renew 1yr precautionary arrangement under the IMF Flexible Credit Line for 1,000% of quota (SDR 32 billion or about $48 billion)

MARKETS: FX: Peso strength builds; midday Wed firms 0.25% to 12.6120/US$ at benchmark 48hr interbank sell-rate, firmest since late 2008

MARKETS: STOCKS: Positive China data sparks opening rally, by midday Wed Mexican Bolsa IPC index moving laterally, +0.43% to 32,655.11

Top Story Universal: Court Seals PGR Files - Supreme Court backs legal change to permit Attorney General's Office to withhold info from CNDH

Top Story Jornada: PRI-PAN Pact Put Calderon In Presidency - Agreement between parties allowed PAN's Calderon to win office, PRI deputy says

Top Story Reforma: Hotels Lose $1bln - In 2009 sector suffers worst fall in 15yrs, with revenue down MXN1.36bln: Inegi

Top Biz Story Reforma: Chinese Auto Parts Gain Market Share - China now 2nd supplier to Mexico after US, displacing Japan, Germany, Canada

Top Story Economista: Tourism Investment -50% Due To Crisis - Spending to reach $2bln in 2010, v. $4bln average in past years

Top Story Financiero: Double-Edge Blade, Low Risk Perception - Country risk at lowest point since crisis, but takes pressure off reforms

Top Story Milenio: PRI Attacks Enliven Alliance: PAN - PRD and PAN say PRI 'lies and smears' fortify their strategy of electoral alliances

Top Story Cronica: Political Reform, This Month: Navarrete - Senate President Carlos Navarrete says reform to political system imminent

MANPOWER: Mexico employment poll shows 24% of firms see hiring in Q210; seasonally adj net hiring tendency of +10 v. +6 in Q1 and -3 in Q209

INEGI: Revised Jan trade balance at -$333mln v. -$246mln in Dec; non-petroleum balance at -$1.218bln in Jan v. -$1.311bln in Dec

BANXICO: Foreign reserves at $94.545bln Mar 5 v. $94.470 on Feb. 26

BANXICO: Feb consumer prices +0.58% from Jan; annualized inflation at 4.83% v. 4.83% in Jan; core prices +0.4% in Feb; annual 4.6% v. 4.5%

Top Story Universal: Democracy Disappoints - Universal poll shows 72% affirm democracy is best option for govt, but 68% still disappointed

Top Story Jornada: We Don't Want Your War: Juarez - Civil groups call for an end to militarization of Ciudad Juarez, other cities in Mexico

Top Story Reforma: Real Estate Corruption Rules: GDP - Fed Dist govt admits permit, code, zoning regulators deeply corrupted by developers

Top Biz Story Reforma: Chinese Clothing Imports At A Peso - Despite countervailing duties, tons of articles imported at extremely low prices

Top Story Economista: Costs, Crime Worry CEOs - PwC survey reveals high energy prices in country, organized crime threat among top concerns

Top Story Financiero: Private Sector Crusades For Reforms - Major business orgs to mobilize nat'l campaign to rally public against gridlock

Top Story Cronica: Leftist Parties File IFE Complaint Against Gomez Mont, Peña Nieto - PRD, others charge PAN-PRI electoral pact illegal

Top Story Milenio: US To Spend $5.6bln To Halt Arms - Ambassador Pascual says Washington to spend sum to attack arms flow to Mexico

LOGISTICS: Kansas City Southern de Mexico acquires interrmodal Puerta Mexico facility in Toluca; annual capacity of 150k containers/yr

MARKETS: FX: Peso cedes from Fri close at strongest point YTD; benchmark 48hr interbank sell rate softens 0.18% mid-Mon to MXN12.6681/US$

MARKETS: STOCKS: Opening rally falters; Mexican Bolsa IPC index +0.05% to 32,452.40 in choppy midday trade Mon

INEGI: Leading Composite Index +0.71% monthly in Dec 09 to 113.8 on seasonally adjusted basis (2003=100); 7th month predicting future growth

INEGI: Current Composite Index +1.32% monthly in Dec 09 to 100.1 on seasonally adjusted basis (2003=100); 3rd month of business cycle gains

POLL: Consulta Mitofsky finds that Enrique Peña Nieto (PRI) leads public preference for next president with 25%; AMLO distant second with 7%

Top Story Universal: Discrimination Against Mexican Women Grows - The first 10 years of the century have seen few advances in women's rights

Top Story Jornada: PRI Is Not A Traitorous Party: Paredes - PRI Nat'l President attacks PAN's accusations of breach of secret electoral pact

Top Story Reforma: Deputy Fakes Diploma - Oaxaca Dep. Jorge Franco Vargas (PRI) lied about law degree, may represent civil, criminal fraud

Top Biz Story Reforma: CFE To Sell Power-Hours - State electricity utility to sell pre-paid power in cell-phone-like scheme

Top Story Economista: Female Executives With Few Options In Mexico - Only 30% of working-age women work; in financial sector earn 63% of men

Top Story Financiero: Austerity Goals Not Met - Govt austerity has failed; now Federal Public Expenditure Program to be announced Mar. 15

Top Story Milenio: Calderon, Beltrones: Get Over It - President, PRI Senate leader say time to move past electoral pact dispute

Top Story Cronica: PRI Puts Pact With PAN In Past - PRI Senate leader Manlio Beltrones says time to move on, leave recriminations aside

MARKETS: FX: Peso firms on US jobs data, strengthens 0.59% to 12.6451/US$ at bellwether 48hr interbank sell rate; strongest close of 2010

MARKETS: STOCKS: Mexican Bolsa IPC index rallies early, maintains levels to close day up 0.73% at 32,436.53; highest close in 6wks

Top Story Universal: Nava Admits Pact He Denied - Nat'l PAN head forced to acknowledge electoral deal with PRI after documents released

Top Story Jornada: Cesar Nava Admits Lying; Signed Pact W/PRI - National PAN head confesses: No alliances in exchange for PRI vote on budget

Top Story Reforma: Magna Surpasses MXN8 - For 5th time in 4 mos govt plans gasoline hike; Magna unleaded prices above MXN8/L for 1st time

Top Biz Story Reforma: Alerts Issued Over E-Fraud - New phishing attack emulates Telcel airtime promotion, seeks credit card info

Top Story Economista: Energy Strategy Divides Legislature - PRD and PRI criticize National Energy Strategy document, proposed by Los Pinos

Top Story Financiero: 43% of Mexicans Without Fin Services - Though 'banked' population nearly doubled since 2007, nearly half still without

Top Story Milenio: 'Abstain From Coalitions If...' - PAN leader admits party pact w/PRI to abstain from alliances; says PRI broke pact 1st

Top Story Cronica: PAN-Govt Out To Derail PRI: Paredes - Head of PRI Beatriz Paredes lashes out at PAN-PRD electoral alliances

NEW PASSPORT RULES: US and Canadian residents/citizens traveling to Mexico must carry a passport to enter Mexico; border residents excepted

MARKETS: FX: Benchmark 48hr interbank sell rate mostly flat Tuesday, mere 0.01% firmer at 12.7509 pesos/US$

MARKETS: STOCKS: Mexican Bolsa IPC index sustains morning gains, ends day Tuesday +0.91% at 32,055.04

FinMin: Federal government's net foreign debt at $47.968bln as of Jan 2010 v. $46.208 in Jan 2009

FinMin: Fed expenditures +0.7% in real terms Jan10/Jan09; discretionary exp. (70%) +1.6%; mandatory exp. (23%) +34.8%; fin costs (7%) -49.3%

FinMin: Fed revenue +16.1% in real terms Jan10/Jan09; non-petrol rev. +18.0% on income taxes, VAT, and excise taxes; petroleum rev. +10.2%

TRADE: Economy Ministry eliminates countervailing import quotas on US apples after dumping investigation finds no evidence

Top Story Universal: Supreme Court Fingers Bours, Molinar For ABC - Special commission finds Sonora gov, ex-social security head share blame

Top Story Jornada: Molinar, Bours Blamed In ABC Fire - Supreme Court inquiry finds 'general disorder' in govt daycare system & oversight

Top Story Reforma: Educ. Ministry Exercises Hiring Discretion - New rules skirt 2008 reform to require competition-based teacher hiring

Top Biz Story Reforma: Lower Costs Raise Profits - Amid -6.5% GDP variation, publicly traded companies grew profits 25.8% on ave. last year

Top Story Economista: Operating Costs Ate Primer Empleo Budget - Calderon's "First Job" youth employment program proves costly, ineffective

Top Story Financiero: GDP Growth To Slow Year-End - Economists see rate peaking in Q2 at +4.8%, easing to +2.9 by Q4

Top Story Milenio: ABC Case: Molinar, Bours Involved - Supreme Court inquiry fingers IMSS director, Sonora governor, for rights violations

Top Story Cronica: Bours, Molinar Omissions in ABC -
Supreme Court inquiry finds 16 govt officials guilty of negligence in ABC daycare fire

MARKETS: FX: Benchmark 48hr interbank sell rate weakens slight 0.03% to 12.7290 pesos/US$ in early trade Tue

MARKETS: STOCKS: Mexican Bolsa IPC index up 0.74% in early trade to 31,998.80, tracking Wall St.

BANXICO: Foreign reserves rise to $94.470bln on Feb 26 from $93.750bln on Feb 19

MARKETS: FX: 48hr interbank sell rate firm at open on Greece optimism, ends Monday 0.23% stronger at 12.7613 pesos/US$

MARKETS: STOCKS: Mexican Bolsa IPC index opens up on Greece optimism, ends day Monday +0.41% at 31,765.14

Top Story Universal: FCH Image Down - Public approval for President Calderon falls from 54% in Mar 09 to 41% at present: El Universal Survey

Top Story Jornada: Aneh, Tlahtocuicani - "Goodbye, Poet" in Nahuatl as writer, teacher, social activist Carlos Montemayor succumbs to cancer

Top Story Reforma: Billion-Dollar Refinery Delay - 3yr delay in Minatitlan refinery upgrade has cost $2bln in cost overruns, fuel imports

Top Biz Story Reforma: Tata Motors Mulls Mexico Investment - India's largest carmaker conducting studies to build assembly plant in country

Top Story Financiero: A Halt To Bank Capital Flight - Authorities will lower from 50% to 20% amount of capital stock banks may lend overseas

Top Story Milenio: Beltrones Calls For Pro-Governance Reform - PRI Senate caucus head Manlio Fabio Beltrones urges passage of state reform

Top Story Cronica: 711 Deaths, 2mln Affected - The Chilean govt sent 10k soldiers to Maule and Bio Bio, regions most affected by earthquake

BANXICO: Central bank economist survey polls ave 2010 GDP forecast of +3.87% v. +3.28% in previous month survey; 2011 seen at 3.65% v. 3.46%

BANXICO: Central bank economist consensus survey reveals year-end forecast for consumer price index of +5.21% v. +4.93% in previous month

BANXICO: Central bank economist consensus survey reveals 2010 forecast for year-end 28-day Cete interest rate of 5.29% v. 5.46% previously

BANXICO: Central bank economist consensus survey reveals year-end forecast for 48hr interbank FX spot of 13.04 pesos/US$ v. 12.97 previously