Mexico Manufacturing PMI Falls Further

Mexico’s S&P Global Manufacturing PMI dropped to 47.7 in April 2026 from 48.9 in March, signaling a sharper deterioration in the sector. The index remained below the 50.0 threshold for an eighth straight month. New orders declined for the sixth consecutive month, leading to a marked drop in output that was steeper than in March. International sales also contracted, adding to demand weakness. Cost pressures intensified, with input prices rising at the second-fastest pace on record. However, firms passed on only limited increases, with output price inflation remaining subdued. Producers continued to trim inventories and scale back purchasing. Weak demand also drove job cuts, with firms reducing temporary staff and placing permanent workers on technical leave. Business sentiment turned negative, with firms expecting output to decline over the next 12 months amid cash flow constraints, high costs, weak investment, tariffs, and geopolitical tensions.

Mexico's S&P Global Manufacturing PMI rose to 48.9 in March from 47.1 in February, signaling the slowest contraction in five months. New orders fell for the fifth straight month at a moderate pace, the weakest over this period, as firms cited demand weakness, inflation, US tariffs, and the Middle East war. Export orders declined at their weakest rate in five months, with lower demand from Japan and the US. Production fell at the slowest pace since October. Input costs rose at a six-month high amid tariffs, unfavorable exchange rates, and Middle East tensions, with higher outlays on chemicals, energy, metals, and fuel. Despite intensifying cost pressures, selling prices rose only slightly. Employment fell as firms placed workers on technical breaks and non-renewed contracts. Supply disruptions persisted, with material delays of one to three weeks due to highway blockades and geopolitical tensions.

The S&P Global Mexico Manufacturing PMI edged up to 47.1 in February 2026 from 46.3 in January, still signaling a marked deterioration in operating conditions. The survey showed a sixth consecutive monthly decline in demand for Mexican goods. New orders fell at a softer rate, while output decreased further, at a pace that was less severe than at the start of the year. New export orders also declined, reflecting weak demand from Europe and the US, though the pace of contraction eased to a three-month low. US tariffs and currency movements were cited as key drivers of higher input costs, with inflation slowing from January but remaining historically elevated. Firms continued to pass costs on to clients, although output price inflation slowed to its weakest rate in a year. Job shedding intensified to a marked pace as firms trimmed headcounts. Meanwhile, business confidence recovered marginally, with firms turning optimistic about the year-ahead outlook after a brief period of pessimism.