Manufacturing activity on the rise in Mexico

The Mexico Manufacturing Purchasing Managers' Index increased to 52.3 in June from 51.2 in May, Market Realist reported. 

The jump in the index in June represented the strongest expansion in manufacturing activity since May 2016. Manufacturing output also increased significantly, driven largely by new product launches, greater demand from clients and expanded inventories, the source noted. 

Sector-wise, manufacturing activity had significant increases in the telecommunications, financial and energy sectors, with Market Realist attributing the gains to higher levels of trade openness. 

The rise in production comes as Mexico posted strong employment growth during the first quarter of the year. During this period, the country's employment rate increased by 0.4 percent, which is higher than the average rate for countries involved in the Organization for Economic Cooperation and Development, The Yucatan Times reported. Mexico and Canada had the two fastest rates of any OECD nations. 

The increases brought the total employment rate in Mexico to 61.4 percent. The OECD average rate is 67.4 percent. 

More Mexican workers are also gaining access to social security, Bloomberg reported. More than 517,000 employees in the country received social security in the first half of the year, which is the highest number of workers to earn such benefits in more than 20 years. 

The Mexico Manufacturing Purchasing Managers' Index increased to 52.3 in June from 51.2 in May.