Mexico recorded a trade surplus for the third consecutive month in April, the longest advance in nearly two years, after exports rose, indicating that the economy is gaining momentum after starting on a poor note in January.
The national statistics agency reported that trade surplus stood at $510 million in April, exceeding projections by most economics. A Bloomberg survey had expected the figure to be a $433 million deficit.
Sales of autos surged 12 percent, while exports of manufactured goods-which contributed 83 percent of the total exports-grew 7.1 percent from a year ago, the fastest since September.
“The strong export rebound is behind this surprise, and this is positive for growth in the coming months,” Marco Oviedo, the chief Mexico economist at Barclays Plc, told Bloomberg News.
Exports grew 3.7 percent last month from a year ago, the third consecutive monthly gain after a slump in January, which was mostly due to the harsh winter weather in the US, Mexico’s largest export market. However, the increased manufacturing exports were weighed by a 21 percent decline in crude oil exports. The drop is mostly due to the ongoing liberalization of the oil sector to allow foreign players into Mexico’s oil industry.
Exports of light vehicles grew 9 percent to 202,328 last month after deliveries grew 67 percent to Canada and 19 percent to the U.S, said Mexican Automobile Industry Association on May 7. Companies such as Mazda Motor Corp, Honda Motor Co. and General Motors Co. have production hubs in Mexico.
The Mexican peso rallied on the report, reversing earlier losses to trade at 12.8596 per US dollar in late morning trade in Mexico City. To register for a free 2-week subscription to ForexMinute Premium Plan, visit www.forexminute.com/newsletter.
To contact the reporter of this story; Jonathan Millet at email@example.com