LatinNews Daily - 07 October 2020

* Mexico’s national statistics institute (Inegi) has released its latest monthly indicator on gross fixed capital formation (GFCF), which measures investment levels in fixed capital goods such as machinery and equipment, and in construction. According to Inegi’s figures, GFCF spending grew 4.4% in July compared with June, but fell 21.2% year-on-year. Investment in construction is picking up more timidly, growing 1.1% in monthly terms and falling 23.7% year-on-year, while investment in machinery and equipment grew 11.1% compared with June, falling 17.6% year-on-year. While noting July’s positive result following the sharp drop in GFCF in April and May, when the containment measures against the coronavirus (Covid-19) pandemic hit the hardest, Inegi president Julio Santaella has pointed out that the July increase is small, and does not support the impression of a ‘V-shaped’ recovery in investment given by June results, with investment currently at levels equivalent to those of August 2005. 

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