Mexico’s Institute of Finance Executives (IMEF) has recently announced that its manufacturing index remained constant in the month of December in spite of usual seasonal break, hinting continued improvement in one of the hardest –hit segments of the financial system.

The IMEF manufacturing index for December was 52.6, same as in the month of November and well above the 43.8 in December 2008.

While releasing a press note, IMEF said, “Although the indicator has been at the same level for practically three months, December’s results is encouraging since the number usually decreases from the previous month.”

As with indexes made by the United States Institute for Supply Management, readings above 50 show growth while reading below 50 shows reduction.

Moreover, the IMEF said, “This suggests to us that the industrial sector will keep on in a stage of recovery, albeit at a more moderate pace.”

In November last year, the non-manufacturing index was 52.9 and in December 2008, it was 46.1.

Mexican economy is approximated to have slipped by 7 percent last year. Gross Domestic Profit (GDP) was at its lowest point in the middle of the year, but recovered strongly quarter-on-quarter growth in the 3Q from the 2Q.

However, economists expect that the recovery will continue in the coming months as foreign demand for Mexico's manufactured goods increased.