Growth in Mexico's manufacturing sector accelerated in February to its fastest pace in nine months as new orders and output rose despite an uptick in input costs due to the weak peso, a survey showed on Tuesday.
The Markit Mexico Manufacturing Purchasing Managers' Index rose to 53.1 when adjusted for seasonal swings, the highest level since May, 2015, from 52.2 in January.
A reading above 50 signals expansion, while a reading below that points to contraction.
The survey showed output accelerated to its fastest pace in three months, while the rate of new orders hit a 10-month high. However, input prices rose significantly, as Mexico's peso has hit a series of record lows in recent months.
Last month, Mexico's central bank announced a surprise interest rate hike and a discretionary forex intervention plan to shield the peso from further weakness.
But uneven U.S. demand for Mexican factory exports and tanking oil prices have hit growth in Latin America's no. 2 economy.
Mexico sends about three-quarters of its exports, which are mostly manufactured goods like cars and TVs, to the United States.
The PMI index is composed of five sub-indexes tracking changes in new orders, output, employment, suppliers' delivery times and stocks of raw materials.