Mexico Factory Activity Contracts for 3rd Straight Month

2025-12-01 15:12 By Felipe Alarcon 1 min. read

Mexico’s S&P Global Manufacturing PMI fell to 47.3 in November 2025 from 49.5 in October, signalling a sharper deterioration in operating conditions and the lowest reading since June, keeping the index below 50 for a third month.

New orders posted a solid decline after three months of growth, with the pace of contraction the fastest since mid-year, while new export orders fell for the twenty-first consecutive month as softer US demand weighed on external sales.

Factory output contracted for a seventeenth month and at the steepest pace since May.

Firms cut purchases and reduced staff through technical breaks and non-renewed temporary contracts, marking the sharpest job cuts in nearly four years.

Finished goods inventories rose as stocks of purchases fell.

Input costs increased due to higher freight and material charges, tariffs and adverse exchange rates, while output prices rose only slightly as firms absorbed costs.

Business confidence stayed positive but slipped to a three-month low.



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Mexico’s S&P Global Manufacturing PMI fell to 47.3 in November 2025 from 49.5 in October, signalling a sharper deterioration in operating conditions and the lowest reading since June, keeping the index below 50 for a third month. New orders posted a solid decline after three months of growth, with the pace of contraction the fastest since mid-year, while new export orders fell for the twenty-first consecutive month as softer US demand weighed on external sales. Factory output contracted for a seventeenth month and at the steepest pace since May. Firms cut purchases and reduced staff through technical breaks and non-renewed temporary contracts, marking the sharpest job cuts in nearly four years. Finished goods inventories rose as stocks of purchases fell. Input costs increased due to higher freight and material charges, tariffs and adverse exchange rates, while output prices rose only slightly as firms absorbed costs. Business confidence stayed positive but slipped to a three-month low.
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