While some improvements have become apparent in Mexico’s economy, the drag coming from muted industrial activity and the impact from lower commodity prices is forecast to remain a challenge for the near future. The latest monthly industrial production number was showing a slight decline of 0.1% m-o-m and capacity utilisation also fell to 79.2%, the second lowest level since the beginning of the year. This slow momentum has been also reflected in the latest 3Q14 GDP growth number, which stood at 2.0% q-o-q saar. However, the PMI index for manufacturing points at a recovery as it rose to 54.3 in November, after 53.3 in October. Given the somewhat slowing momentum, the 2014 GDP growth forecast has been revised from 2.4% to 2.2%, while the growth forecast for the coming year remains unchanged at 3.3%.