Mexico | Manufacturing production deteriorates, with a decline in the automotive sector

Summary

The BBVA Research Multidimensional Manufacturing Indicator (BBVA Research MMI) fell (-)3.0% YoY in August, the largest contraction since January.

Key points

• Key points:
• The decrease in production during the eighth month of the year was driven by the slowdown in the automotive segment and the chemical industry.
• According to activity figures from INEGI, manufacturing fell (-)2.1% MoM in July, the largest decrease since February 2021 (with a year-over-year variation of -1.3%).
• Regarding capacity utilization levels, as of July, sixteen of the twenty-one subsectors were below their figures from the beginning of the year (vs. fifteen the previous month).
• While the advancement of import orders from the U.S. temporarily favored the Mexican export sector during the first half of the year, manufacturing faces an adverse outlook for 2H25: tariff uncertainty, the USMCA review, and lower investment will limit its growth.

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