Mexico sees biggest manufacturing growth in two years this March

Manufacturing in Mexico rose to its highest level in the past two years this March, according to Bloomberg. Exports increased along with consumer spending. Factory output grew by 6.8 percent year over year.

The peso has not become more volatile in relation to this change. It grew to 12.95 per U.S. dollar on May 12.

In fact, the peso has seen far less volatility lately. The peso now stands at 6.95 percent as of the same time period, falling for the 21st day in a row, a Bloomberg Businessweek article reported. Many investors believe this indicates that the Mexican economy is beginning to pick up momentum.

Although the quick pace that Mexico's manufacturing has experienced this March is being taken for a sign of future economic growth, many investors are waiting for economic indicators of a sustainable recovery after the sluggish first quarter.

"We hope that the finance minister is right," said Roberto Galvan, a trader at Intercam Casa de Bolsa SA., in a phone interview with Businessweek. "The vast majority of market participants see a stronger peso, but it hasn't solidified."

Peso securities have climbed two basis points to a yield of 6 percent. This may encourage more U.S companies to consider building a maquiladora in Mexico.