Mexico’s economic expansion will likely continue at its current pace in the months ahead, but it will face downside risks due to low oil prices, according to The Conference Board.

The leading economic index for Mexico fell sharply in December, driven mainly by falling oil prices. However, November’s small decline in the index was revised up to a gain.

The Conference Board reported its leading economic index for Mexico fell 2.6% in December and now stands at 103.6 (2010=100). The leading index rose 1.0% in November and fell 0.8% in October, based on revised data. However, during the six-month span through December, the index fell 3.4%, substantially down from the 1.9% increase for the first half of last year, according to The Conference Board.

Meanwhile, the coincident economic index for Mexico, a measure of current economic activity, continues on a slightly upward trend. The CEI edged up 0.3% in December and now stands at 114.4 (2010=100). All three components that comprise The Conference Board’s coincident economic index for Mexico — the number of people employed, retail sales and industrial production — rose in December.