Weekly Report - 19 October 2004

INDUSTRIAL OUTPUT | Maquiladoras lead upswing. Industrial output in August was up 5.2% year-on-year, which with accumulated production this year has reached a level 3.8% higher than in the same period of 2003. The August upswing was led by a 5.7% increase in manufacturing - itself driven by a 9.6% rise in the output of the maquiladora (assembly) industry and one of 5.4% in that of the rest of the subsector.

Construction activity was up 5.5% year-on-year, exerting a strong pull on the supply of construction materials. Less brilliant was the performance of the mining industry, which recorded a year-on-year increase of only 0.6%, leaving the accumulated output at a level 3.3% higher than last year. This was largely the result of a 1.7% fall in the oil sector, which neutralised the 3.7% increase in other mining activities.

AUTO INDUSTRY | Home sales hit new record. Sales of motor vehicles in September in the domestic market (including those of imported cars) reached 81,256 units, a record for that month and 15.9% more than in the same month of 2003. The increase is attributed chiefly to improved credit facilities being offered. Accumulated sales this year are up 9.7% on last year.

Exports in September, while still higher than domestic sales at 93,133 units, were down 9.3% year-on-year, which left the total for January-September down 7.6% on the same period of 2003.
Domestic production in the first nine months was also down, by 2.9%, on last year, though September registered an encouraging year-on-year increase of 7.3% thanks to the pull exerted by home demand.