Mexico’s exports soared by to a record of more than $52 billion in September, led by an auto sector that is rebounding from supply chain problems. Exports rose by more than 25% from a year earlier, the national statistics institute said Thursday, helped by the ongoing recovery in the US, which has boosted demand in Mexico’s industrial northern states. Imports rose 21% over the same period. The trade deficit narrowed more than expected, to $895 million, compared to a median forecast of $4.5 billion of analysts surveyed by Bloomberg. Auto exports rose 42% in September from a year earlier. The sector suffered a drop in output amid supply chain problems and weak demand during the pandemic, but is now recovering strongly.
“Going forward we expect a competitive exchange rate and the gradual alleviation of frictions that have been affecting several manufacturing supply chains to support Mexican exports, though likely largely mitigated by softer global and US external demand,” wrote Alberto Ramos, chief economist for Latin America at Goldman Sachs Group Inc., in a note. Manufactured goods represent nearly 90% of Mexico’s export value this year year, with items such as industrial equipment and electronics contributing to the strong performance, while petroleum products account for about 7% of the total. “The growth of the export sector continues to be strongly concentrated in the manufacturing sector,” wrote Gabriela Siller, director of economic analysis at Grupo Financiero Base, in a note.