Mexico's September Trade Deficit Narrows to $606 Million

what happened

Mexico recorded a trade deficit of $606 million in September, well below the $2.48 billion gap of a year earlier. Dow Jones Newswires, citing the national statistics institute Inegi, reported that exports climbed 37.9% to $77.8 billion, while imports grew 33.1% to $78.4 billion.

Oil exports became more valuable: the average price of crude rose by $30.66 a barrel to $92, but shipped volumes fell from 653,000 to 466,000 barrels a day. Manufactured exports increased 39% to $72.8 billion, with electronic goods shipments nearly doubling.

For the first nine months of the year, the trade balance posted a $9.25 billion surplus, compared with a $3.4 billion deficit in the same period last year.

why it matters

For markets, the shift in the nine-month trade balance matters: it supports the peso and shows that exports, especially manufactured goods, are growing faster than imports. The sharp rise in intermediate goods imports, however, points to strong demand for components used in production.

market impact

Peso: nine-month trade surplus supports the currency

• ▲Mexican peso pressure up — the nine-month trade surplus creates demand for the currency

tags

instruments