Mexico Economy Shrinks for Second Straight Month

2025-10-22 13:05 By Isabela Couto 1 min. read

Mexico’s economic activity index fell 0.9% year-on-year in August 2025, after a 1.1% decline in Julyless than market expectations of a 1% drop.

The downturn was driven by a 3.6% drop in secondary activities, with losses across all industries: mining (-6.8%), construction (-4.0%), manufacturing (-3.1%), and utilities (-2.2%).

Services fell 0.1%, reversing a 0.4% rise, as wholesale trade (-6.7%), restaurants and lodging (-3.3%), public administration (-2.7%), education (-1.2%), and transport and warehousing (-1.1%) all contracted.

In contrast, the primary sector rebounded 16.2%, recovering from a 12.6% plunge in July, led by agriculture (26.5%) and animal production (3.3%).

On a seasonally adjusted basis, activity rose 0.6% from July, offsetting the prior month’s 0.9% decline.



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