Mexican Data and Beyond

Knowing how to interpret data is something we should continuously work on. But, to some, data is scary.

We don’t always know what we should be looking for, and how.

But there are two ways of looking at data anyone can use.

First, how was the data versus expectations?

Second, is the direction of the change supportive or not?

How the data did against expectations is easy to get a grasp on, like a guessing game.

The direction of change, or the trend in change, is clear.

Let’s see this in play by looking at some data in Mexico.

Mexican economic activity for November 2024 rose .5% versus November 2023.

Versus expectations, it was .5% versus forecasts of .6%. While this is in-line and will not bowl anybody over, at least it was not bad, no harm done.

The real kicker comes when one looks at the trend or direction of change. This marked the fifth consecutive period of growth in Mexican economic activity.

Versus forecast, a bit light, but not bad, neutral.

For direction of change, fantastic. Five periods of growth in a row, positive, great for Mexico’s investment and savings story.

Another one: Mexican GDP expanded 1.1% in the quarter ended September 2024 versus expectations of 1%.

Versus expectations, nothing great 1.1% v 1%.

But from a trend and direction standpoint, excellent. In the quarter ending in June, it was .2% and, in the quarter, ended March it was .1%.

Versus expectations-good but not great

Direction and trend, very good.

Mexico as a place for savings seems to be getting better.

Aside from decent economic trends, Inflation is under control which will probably allow the Mexican Central Bank to lower interest rates.

And, the Peso has strengthened year to date

And, US tariffs do not seem to be as big a deal as once thought.

Conclusion. Mexico seems to place to park some savings and investments.

And it all starts with data.

This blog is for educational and informational purposes only, covering general market trends, industry developments, and asset features. Nothing herein is investment advice, a solicitation, or a recommendation to buy or sell any assets. Etherfuse and its guests may hold stakes in some or all of the assets discussed.