Mexican Economy Continued To Grow Above Trend in September 2022

The National Institute of Statistics and Geography (INEGI) released this Friday updated information on the Cyclical Indicators System (SIC), September 2022, which shows the performance of the country's economy.

The state agency's monthly report said that "in September 2022, the Coincident Indicator was above its long-term trend by presenting a value of 101 points and a variation of 0.04 points concerning August." This showed that "the Coincident Indicator moderated the upward trajectory reported in previous months." 

According to the report, the decline or recovery of the Coincident Indicators does not show a contraction or recovery of economic activity but rather indicates "the degree of certainty about the direction of economic activity."

"In October 2022, the Leading Indicator was below its long-term trend by registering a value of 99.5 points and a decrease of 0.15 points compared to September." This indicator showed "a lower decrease than that reported in the previous month."

The economic cycle system is composed of two types of indicators: one "coincident" with the month in question (September) and the other "leading" (October). Both are referenced to their respective long-term trends, known as the growth cycle. 

The value of the Coincident and Leading Indicators, as well as their long-term trend represented by a value equal to 100 points, allows identifying four phases of the economic cycle.

These phases are growing above the long-term trend of 100 units, as in September, growing below the long-term trend, declining above the long-term trend and declining below the long-term trend.

The Cyclical Indicator System is based on the methodology used by the Organization for Economic Cooperation and Development (OECD).