MEXICO CITY, Nov. 3 (Xinhua) -- Mexico's economy is showing signs of an "incipient improvement," with the stabilization of the manufacturing sector and a more widespread recovery in services and commerce, the Mexican Institute of Finance Executives (IMEF) said Tuesday.
In a report on leading indicators for the Mexican economy, the IMEF noted the indexes for the manufacturing and non-manufacturing sectors reflect a moderation in the period of weakness, and an economic environment that is beginning to show more favorable signs.
"However, the evolution of their respective trend-cycle components suggests that the recovery remains fragile and uneven; therefore, it is still premature to confirm a shift in the cycle toward a phase of solid and sustained expansion," the institute cautioned.
The IMEF manufacturing indicator edged up slightly from 49.7 points in September to 49.8 points in October, remaining very close to the neutrality threshold but still in the contraction zone for the 31st month in a row.
Meanwhile, the IMEF non-manufacturing indicator, which covers commerce and services, showed a significant improvement during the period, rising from 49.7 to 50.6 points and re-entering the expansion zone following a prolonged period of weakness.
The manufacturing sector continues to show signs of stabilization, bolstered by a recovery in demand and employment, the report noted. However, disparities among its components persist, limiting the strength of this progress.
Mexico's government projects economic growth of between 1 and 2 percent by the end of 2026.
Mexico's economy, the second-largest in Latin America after Brazil, expanded by 0.5 percent in 2025, driven primarily by the services sector, amid weakness in industrial activity linked to the United States. ■