Demand for the country’s goods hit by inflation after a long pandemic-driven downturn

The seasonally adjusted S&P Global Mexico Manufacturing Purchasing Managers’ Index (PMI) fell to 48.5 in July from 52.2 in June.

Aside from a brief hiatus in May and June, Mexico’s PMI has lingered below the 50-point threshold that separates growth from contraction since March 2020

It hit a record low of 35.0 in April 2020 during the initial enactment of the country’s COVID-19 containment measures

The data showed a July drop in factory orders and lower sales, with pressure from drought, input shortages and inflation.

The data showed a July drop in factory orders and lower sales, with pressure from drought, input shortages and inflation.

The drop in manufacturing output also prompted a marginal drop in employment for the first time in four months.

Mexico’s central bank announced a record interest rate increase last month if an effort to control inflation, with more hikes expected.