Mexico Manufacturing PMI at 2024-Highs

The S&P Global Mexico Manufacturing PMI rose to 51.3 in June 2026 from 49.6 in May, marking the strongest reading since March 2024 and signaling improvement in operating conditions. Order book volumes expanded at the fastest pace in 27 months, supported by the FIFA World Cup, while new export orders rose at the end of the second quarter. Production declined marginally due to cash flow issues, input shortages, and technical stoppages. Input inventories fell for a ninth consecutive month as supplier delivery delays persisted, driven by blockades, highway insecurity, material shortages, customs issues, and the conflict in the Middle East. Meanwhile, buying activity rebounded, reflecting stronger demand and inventory building. On the labor market, manufactures singaled another job shedding. Meanwhile, cost pressures eased.Looking ahead, manufacturers remained optimistic, with business confidence rising to a three-month high.

The S&P Global Mexico Manufacturing PMI rose to 49.6 in May 2026 from 47.7 in the previous month, signaling a softer deterioration in factory activity and the joint-mildest contraction in the current nine-month downturn. New orders returned to growth, supported by stronger domestic demand, upcoming FIFA World Cup-related activity, and the approval of pending projects. However, manufacturing output continued to decline, while export orders fell at the sharpest pace in three months amid weaker demand from Europe, Japan, and the US. Elevated cost pressures linked to tariffs and the war in the Middle East pushed input price inflation to one of the highest levels in over 15 years, driven by higher energy, fuel, transportation, and raw material costs. Firms responded by reducing purchasing activity, cutting inventories, and shedding jobs. Despite ongoing challenges, business confidence improved and turned positive in May, although optimism remained subdued by historical standards.

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.