Mexico Investment Growth Beats Expectations

Mexico’s gross fixed investment rose 7.7% year-on-year in June 2026, following a 1.1% increase in May and marking the third consecutive month of growth. The result exceeded market expectations of a 4.8% expansion. Overall investment growth was driven by an 18.1% increase in public investment and a 6% rise in private investment. Construction investment climbed 9.2%, supported by a 25.8% surge in public construction, lifting non-residential construction by 11.1%. Investment in machinery and equipment rose 6%, driven by higher imports, which increased 10.2%, led by a 15.6% rise in transport equipment and a 9.3% increase in other machinery and equipment. On a monthly basis, gross fixed investment rose 1.3% after falling 0.4% in May. In the first half of 2026, gross fixed investment increased 0.8% from the same period of 2025.

Mexico's gross fixed investment rose 1.1% year-on-year in May 2026, following a 5.9% increase in April and marking the second consecutive month of growth, while exceeding market expectations of a 0.3% gain. Construction investment increased 2.7%, supported by a 12.4% rise in non-residential building, which more than offset a 4.7% decline in residential construction. Meanwhile, investment in machinery and equipment fell 0.7%, as a sharp decline in domestic capital goods production, both transport (-8.5%) and other machinery (-11.1%), outweighed higher imports of transport equipment (5.1%) and other machinery (5.7%). Overall investment growth was driven by a 19.7% increase in public investment, offsetting a 1.3% decline in private investment. On a monthly basis, gross fixed investment fell 0.4%, reversing a 4% increase in April.

Gross fixed investment in Mexico rose 5.9% year-on-year in April 2026, marking its first annual increase in 18 months after a 2.6% contraction in March and exceeding market expectations of a 3.8% gain. Construction investment climbed 10.1%, driven by an 18.5% surge in residential building and a more modest 2.0% increase in non-residential construction. Investment in machinery edged up 1.3%, supported by a 10.0% rise in imported machinery and equipment. In contrast, domestic capital formation in machinery declined 11.2%, reflecting a 12.9% decline in machinery and equipment and a 9.2% contraction in transport equipment. On a monthly basis, gross fixed investment jumped 4.0% in April, the strongest increase since November 2020, accelerating from a 0.4% gain in March.