Mexico Investment Extends Declines in September

Mexico’s gross fixed investment fell 6.4% year on year in November 2025, following a 5.5% drop in October and missing forecasts of a 5.6% decline, marking the 15th straight month of contraction. Spending on machinery and equipment plunged 14.5%, led by a 19.5% fall in both domestic and imported transport equipment. Investment in national machinery and equipment declined 12.6%, while foreign purchases dropped 11.9%. Meanwhile, construction rose 1.3%, rebounding from a 0.6% contraction in October, as a 10.3% surge in residential activity offset a 6.5% fall in non-residential building. On a seasonally adjusted basis, investment edged up 0.4% month on month, slowing from October’s 0.9% gain.

Mexico’s gross fixed investment slipped by 5.5% year-on-year in October 2025, following the revised 6.8% plunge in September and worse than the expected 4.3% drop. This marked the 14th consecutive month of reduced investment, continuing at a solid pace. Spending on machinery and equipment fell 10.5%, following a 2.4% drop the previous month, driven by sharp falls in both domestic (-12%) and imported (-9.5%) purchases. Meanwhile, construction edged down 0.7%, far slower than September’s 10.8% drop, as a 13.5% rise in residential activity offset declines in the non-residential segment. On a seasonally adjusted basis, investment went up by 0.9% in October, after a revised 0.2% decrease in the prior month but missing market forecasts of a 1.5% rise. Year-to-date, fixed investment shrank by 7.4% over a year ago.

Mexico’s gross fixed investment fell 6.7% year-on-year in September, easing from a downwardly revised 10.9% drop in August and beating expectations of a 7.7% decline. It marked the 13th consecutive contraction. Construction investment slumped 10.6%, with non-residential activity down 16.3% and residential down 3.1%. Spending on machinery and equipment fell 2.4%, as national investment dropped 7.7%, while purchases of imported capital goods rose 1.3%. On a seasonally adjusted basis, investment slipped 0.3% from the previous month, following a revised 3% decline in August.