Mexico Industries grow up to 0.5% in July

In July, industrial activity in Mexico grew by 0.5% month-over-month, marking two consecutive months of growth following a 0.2% increase in June, according to figures reported by the National Institute of Geography and Statistics (INEGI).

In the year-over-year report, the indicator rose 2.4%, marking the fourth consecutive positive reading and the fastest pace of growth since November 2023, according to INEGI’s Monthly Industrial Activity Indicator.

The analysis of the indicator shows evidence of a monthly uptick, driven by sectors such as construction and manufacturing, which grew by 0.9% and 0.7%, respectively. In the first case, a decline was observed following June's 3.0% increase, while the second indicator returned to positive territory after contracting by 0.6% the previous month.

On a cumulative basis, the industry posted its first positive year-over-year figure in July, as it is estimated to have grown by 0.4% during the first seven months of this year. This marks a modest rebound following the 1.4% decline recorded during the same period last year (2025 ended with a 1.3% decline). The improvement in the indicator is due, above all, to the construction sector, which has posted a 2.8% increase, compared with the 2.1% decline it experienced in 2025.

Although mining has grown by 3.5% (compared with a 9.5% decline in 2025), its share of the overall indicator is smaller.

On the other hand, the electricity, gas, and water sectors showed a decline of 0.03%, as did the manufacturing sector—which is typically the backbone of Mexican industry—which posted a decline of 0.7%.

“We expect industrial activity to continue growing at a moderate and uneven pace over the coming months, with progress still insufficient to confirm a broad-based recovery in the sector,” Janneth Quiroz and Rosa Rubio, economists at Grupo Financiero Monex, noted in a report.

It was also noted that the uncertainty associated with the USMCA review process, combined with the continuation of tariff measures in strategic sectors (such as the automotive industry), could continue to limit investment decisions and the performance of manufacturing industries integrated with the United States.

On a year-over-year basis, industrial activity grew 2.4% in July, marking the fourth consecutive month of growth and the fastest pace of growth since November 2023.