Mexico Fixed Investment Extends Slump in November

Mexico's gross fixed investment was unchanged in December 2025 compared to a year earlier, following a 6.5% decline in the prior month, above forecasts of a 2.8% drop, and marking the first non-negative result since August 2024. Spending on construction rose 4.3%, accelerating from 1.3% in November, driven by a 13.3% surge in residential construction. Meanwhile, investment in machinery and equipment fell 4.6%, moderating from a 14.7% plunge in the previous month, with national machinery and equipment down 9.3% and foreign purchases declining 1.2%. On a seasonally adjusted monthly basis, gross fixed investment expanded 0.5%, matching the growth rate recorded in November.

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.