Mining, construction and electricity generation decreased productivity in February: Inegi

During February 2022, industrial activity in Mexico registered a decrease of 1% monthly and in real terms compared to January, according to the Monthly Indicator of Industrial Activity (IMAI) published by the National Institute of Statistics and Geography (Inegi). Inegi: industrial activity decreased in February 1%, but grew 2.5% annually

Among the sectors that reported the greatest decline in the second month of the year were mining (6.6%), construction (1.5%), electricity generation, transmission and distribution, as well as water and gas supply (0.5%). On the contrary, manufacturing industries advanced 0.6%.

Although there was a loss in the monthly rate, the IMAI reported an increase of 2.5% at the annual rate last February. The economic activities that registered growth were manufacturing industries (6.9%) and the generation, transmission and distribution of electricity, water and gas (4.2%). Meanwhile, construction and mining showed a decrease of 4% and 2.9%, respectively.

Other activities that registered a decline were oil and gas extraction (1.3 per cent); textile manufacturing (-2.2 per cent) and the timber industry (-0.5 per cent). On the other hand, the paper industry, the manufacture of petroleum and coal products, as well as the manufacture of furniture and mattresses recorded growth of 9.8, 19.9 and 11.9 per cent, respectively.

Previously, Inegi had released the IMAI by state with seasonally adjusted figures as of December 2021. According to data released last Friday, 22 states in the country recorded an increase in industrial activity, compared to production in 2020.

The state that recorded the highest growth in 2021 was Morelos, with an increase of 32.6% compared to the previous year, while Tabasco ranked second with an increase of 24.6%. Hidalgo, for its part, placed third place with 12.8%.

Among the other entities that reported an increase in industrial production in December 2021 were the State of Mexico (11.4%), Durango (8.2%), Tlaxcala (7.5%), Nuevo León (6.2%), Sinaloa (6.1%) and Colima (6%).

In contrast, the states that showed a decrease compared to December 2020 were: Campeche (8.7%), Chihuahua (4.3%), Baja California Sur (3.9%), Guanajuato (2%), Jalisco (1.9%) and Nayarit (1.4%).

Likewise, in the mining sector, the states that showed the most significant progress, according to Inegi, were Morelos, Quintana Roo, Tabasco and Chiapas. The generation, transmission and distribution of electricity were Morelos, Guerrero, Sonora and Colima.

With regard to construction, Tabasco, Morelos, Tlaxcala and Hidalgo were the fastest growing entities. Meanwhile, the State of Mexico, Quintana Roo, Durango and Nuevo León recorded the largest increases in manufacturing industries.

Similarly, it should be noted that between January and October 2021, industrial production in Mexico grew 7.4% year-on-year, following the uptick in manufacturing (9.7%), construction (8.6%) and mining (1.7%).

It is in this sense that on Friday, April 8, President Andrés Manuel López Obrador indicated at his morning conference that he would present an initiative to modify the mining law to ensure that lithium is from Mexico. He commented on this in the context of the changes to the Electricity Industry Law that has been discussed in the Plenary Session of the Supreme Court of Justice of the Nation (SCJN).

“If treason were to be carried out, we have the resource of the reform of the mining law, which does not need two-thirds, is a simple majority and we would have the votes to make lithium a mineral of the nation,” said the federal president.

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