Mexico Private Investment Rises More Than Expected

Mexico’s gross fixed investment increased 6.6% year-on-year in July 2026, easing from a 7.7% rise in June but exceeding market expectations of a 5.6% gain. This marks a fourth consecutive month of expansion, albeit at a slower pace as investment growth in the public sector slowed to 6.2% from 18.1% a month earlier. Private investment growth rose further to 6.7% from 6%. Construction investment rose 7.1%, driven by a 10.6% rise in residential construction. Investment in machinery and equipment rose 6.2%, largely due to an increase in imported capital of 11.5%. However, domestic capital in machinery and equipment declined 2.5%. On a monthly basis, gross fixed investment rose 1.4%, following a 1.3% rise in June. In the first seven months of 2026, gross fixed investment increased 1.7% from the same period a year earlier.

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.