Gross fixed investment in Mexico fell 7.6 percent year-on-year in July 2019, following a downwardly revised 8.7 percent decline in the previous month. It was the sixth consecutive monthly decrease in private investment. Investment in machinery and equipment dropped 9.5 percent, after declining 14 percent in June, of which external demand (-14 percent from -20.3 percent) and national (-1.7 percent from -4.9 percent). Meantime, investment in construction activity went down 6.1 percent, faster than a 5.9 percent fall, driven by both residential (-6.8 percent from -5.9 percent) and non-residential (-5.4 percent from -3.3 percent). On a seasonally adjusted monthly basis, fixed investment decreased 0.7 percent, after a 0.8 percent fall in the prior month. Private Investment in Mexico averaged 2.82 percent from 1994 until 2019, reaching an all time high of 33.10 percent in July of 1996 and a record low of -41.90 percent in June of 1995.
Private Investment in Mexico is expected to be 1.50 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Private Investment in Mexico to stand at 2.10 in 12 months time. In the long-term, the Mexico Gross Fixed Investment is projected to trend around 3.10 percent in 2020, according to our econometric models.