Gross fixed investment grew in October

Gross fixed investment grew in October

MEXICO – Mexico's gross fixed investment grew by 6.2% year-on-year last October, driven by the rise in the machinery and equipment sector, the National Institute of Statistics and Geography (Inegi) reported.

Based on original figures, Inegi indicated that this result was obtained in the tenth month of 2022 due to the year-on-year increase of 14.1% in machinery and equipment spending, offset by the 0.4% fall in construction.

Thus, in the first 10 months of last year, gross fixed investment grew by 5.5% year-on-year due to the rise in machinery and equipment (12.2%) and construction (0.3%).

Likewise, according to seasonally adjusted data, gross fixed investment increased by 1.4% last October compared to the previous month, due to monthly growth of 2% in construction and 0.8% in machinery and equipment.

The figures are a reflection of Mexico's economic performance, which grew by 0.9% quarter-on-quarter and 4.3% year-on-year in the third quarter of 2022, accumulating an annual increase of 2.9% over last year.

Mexican gross fixed investment grew by 10% year-on-year in 2021 driven by the economic reactivation after passing the worst stage of the coronavirus pandemic.

While it fell by 18.2% year-on-year in 2020 dragged down by the covid-19 crisis, which totals nearly 330,000 deaths in Mexico, the fifth highest figure in the world.

In 2019, this investment contracted by 4.9%, while it grew by 0.6% in 2018 and decreased by 1.5% in 2017.

Gross fixed investment provides insight into the behavior of investment in the short term, according to Inegi.

It is made up of goods used in the productive process for more than one year and which are subject to property rights.