Mexico Industrial Output Unexpectedly Shrinks

Mexico's industrial production increased 2.3% year-on-year in April 2026, rebounding from a 1.3% decline in March and defying forecasts of a 0.8% drop. It marked the second and strongest expansion in four months. The construction sector surged 10.4%, supported by robust growth in building construction (13.7%), while specialized construction activities rose 3.2% and civil engineering works advanced 0.9%. Mining output increased 3.4%, led by a 23.7% jump in mining-related services. Meanwhile, manufacturing output was unchanged, with the strongest gains recorded in petroleum and coal products (12.1%), while printing and related support activities posted the sharpest decline (-7.3%). On a seasonally adjusted monthly basis, industrial production rose 2.1%, reversing a 0.6% fall in March.

Mexico’s industrial production declined 1.3% year-over-year in March 2026, matching the drop recorded in February and coming in slightly better than forecasts of a 1.5% contraction. The construction sector remained the main drag, shrinking 6.2% amid declines in building construction (-8.1%) and specialized construction activities (-2.4%). Manufacturing output also fell 1.0%, weighed down by a 10.4% drop in the production of electrical accessories, appliances, and power generation equipment. In contrast, mining output expanded 6.0%, supported by a 45.7% surge in mining-related services. The utilities sector also posted modest growth of 0.2%. On a seasonally adjusted monthly basis, industrial production fell 0.6% in March, reversing a 0.4% increase in February.

Industrial production in Mexico fell by 1.1% year-on-year in January 2026, following a 2.4% rise in the prior month and defying analysts' forecasts of a 1.7% increase. Manufacturing slipped by 3%, after a 1.3% rise in the prior month, with notable declines seen for transport equipment (-9.5%); basic metals (-8.3%) and apparel (-7.7%). On the other hand, output grew for construction (4% vs 6.6%); mining & quarrying (0.8% vs 0.6%) and utilities (0.4% vs 3.9%). On a seasonal adjusted monthly basis, industrial output declined by 1.1%, after a downwardly revised 0.1% rise in the previous month.