Mexico | Manufacturing moderates its advance in July

Summary

The BBVA Research Multidimensional Manufacturing Indicator grew 3.5% YoY in July, slowing compared with the previous month. The sector’s weaker momentum comes amid a slowdown in U.S. private spending, suggesting a cooling of manufacturing activity in the second half of 2026.

Key points

• Key points:
• According to INEGI data through June, fifteen of the twenty-one manufacturing subsectors continue to report production levels below those recorded in January 2025.
• Among the segments that exceeded their January 2025 production levels, petroleum and coal products manufacturing (+19.3%) and machinery and equipment manufacturing (+8.4%) stand out.
• The subsectors posting the largest declines in production relative to January 2025 are textile mill products manufacturing (-10.6%), apparel manufacturing (-10.1%), and wood product manufacturing (-9.4%).
• We believe that the slowdown in U.S. private consumption will pose a challenge for the sector going forward, in an environment characterized by slower real income growth in the U.S.

Geographies

Topics

Tags