Mexico’s Capital Investment Recovers in 2026

Last August, gross fixed capital formation by businesses and the government in Mexico (capital investment) decreased by 1.8% month over month in seasonally adjusted terms, returning to negative territory after two consecutive months of growth, according to data released by the National Institute of Statistics and Geography (Inegi).

According to the Monthly Indicator of Gross Fixed Capital Formation (IMFBCF), the decline was driven by lower purchases of machinery and equipment, while construction spending remained unchanged.

The former fell by 3.5% compared with July, when it had increased by 4.4%, while the latter remained flat after declining by 1.4% in the previous month.

From the perspective of funding sources, the 2.2% decline in private investment stood out, marking the indicator's largest monthly drop since April 2025 (-4.5%) and following a 2.3% increase in July.

Meanwhile, publicly funded capital expenditures increased by 1.7%, although this was insufficient to offset the ground lost following declines of 0.5% in June and 5% in July.

Despite the August figures, fixed investment has shown signs of recovery in 2026, following a sharp 6.7% contraction in 2025.

In fact, over the past 12 months, capital investment has recorded monthly growth on seven occasions.

On an annual basis, the improvement was more noticeable, although it also reflects a low comparison base. Despite the monthly decline in August, capital investment increased by 6.1% compared with August 2025, marking five consecutive months of annual growth.

On a cumulative basis, the indicator increased by 2.2% between January and August, following a 7.6% decline during the same period in 2025.

A closer look at the figures highlights construction as the main driver of fixed investment, with spending in this category increasing by 4.6%. Meanwhile, investment in machinery and equipment has only managed to moderate its downward trend, posting a 0.5% decline.

Furthermore, in terms of funding sources, public investment remains a key driver of this recovery, increasing by 10.8%, while private investment has grown by just 0.9%.