global component shortages will keep auto production depressed in the near term a slowdown in the us will constrain external demand and domestic demand will remain subdued owing to the lack of policy support the note saidmexico city mexicos economy shrank 02 percent in the third quarter from the previous threemonth period the first quarterly decline since recovery from the pandemic began preliminary data from national statistics agency inegi showed on friday service sector activity in the country was roiled during the summer from a resurgence in the coronavirus pandemic while global supply chain disruptions have weighed on a recovery in manufacturing notably in key sectors like carmaking advt the seasonallyadjusted contraction in gross domestic product gdp over the julyseptember period compared with a consensus forecast in a reuters poll for growth of 01 and followed surprisingly weak data for august nikhil sanghani an analyst at capital economics said the latest figures left gdp 23 below prepandemic levels though he suggested the august data may be revised up and noted the economy was heading in the right direction going into october but the bigger picture is that the recovery will still struggle from here sanghani said in a research note global component shortages will keep auto production depressed in the near term a slowdown in the us will constrain external demand and domestic demand will remain subdued owing to the lack of policy support the note said a breakdown of the figures showed the contraction was led by weakness in the tertiary sector which covers services and which declined by 06 compared with the second quarter secondary activities which include manufacturing rose by 07 while primary activities such as farming fishing and mining also advanced by 07 the data showed the dent to growth is a setback to mexico which during the pandemic suffered an economic contraction last year of 85 its sharpest slump since the 1930s great depression the main hit came in the second quarter of 2020 since then mexico had posted four consecutive periods of quarterly growth including an increase of 15 during the apriljune period advt compared with the same quarter a year earlier mexicos economy grew 46 percent in unadjusted terms inegi said final thirdquarter gdp figures for latin americas secondbiggest economy are due to be published on nov 25 also readjapans factories extend output declines in sept as supply disruptions weighoutput disruptions across asia and slowing growth in china have clouded the outlook for japans economy which has depended heavily on exports to boost growth as the covid19 pandemic hurt domestic demandsee more detailschina industrial profit growth accelerates in sept despite cost pressuresprofits jumped 163 onyear to 73874 billion yuan 11572 billion the statistics bureau said on wednesday quickening from the 101 gain reported in augustsee more details reuters published on oct 30 2021 at 0520 pm ist telegram facebook copy link be the first one to comment comment now comments comment now read comment 1 all comments post post find this comment offensive