Overview of Mexico’s Industrial Activity in May
Mexico’s industrial activity demonstrated signs of improvement in May, driven by a notable rebound in the construction sector. The Monthly Indicator of Industrial Activity (IMAI) increased by 0.6% compared to April, marking two consecutive months of growth, as reported by the National Institute of Statistics and Geography (Inegi) on Friday.
Interannual Comparison and Sectoral Performance
Although the increase did not prevent the IMAI from turning green in the interannual comparison, it did mitigate its decline to 0.4% from the previous month’s 0.6%. The construction sector led in dynamism, with a monthly expansion of 2.8%, fueled by a 4.9% rise in the building construction subsector, where private investment predominates.
As the subsector with the highest weight in construction, this enabled it to more than compensate for the 5.7% drop in civil engineering construction, where public investment is crucial.
Following the construction sector were the sectors of public services (electricity, gas, and water), with a 0.4% increase; manufacturing (+0.1%); and mining (-1.1%).
Government Confidence in Construction Sector
This week, Mexico City Mayor Claudia Sheinbaum expressed confidence that the construction sector would show greater dynamism in the second half of the year, as public works would rebound due to the start of her administration’s passenger train infrastructure plan and social housing construction program.
Manufacturing Sector’s Moderate Recovery
Meanwhile, the moderate recovery in manufacturing coincides with the uptick in Mexican exports to the United States observed in May, following partial clarification of uncertainty regarding tariff treatment towards Mexico by the Trump administration.
Cumulatively, industrial activity remains in the red, showing a 1.4% decrease from January to May compared to the same period in 2024.
Key Questions and Answers
- What is the Monthly Indicator of Industrial Activity (IMAI)? The IMAI is a measure reported by Mexico’s National Institute of Statistics and Geography (Inegi) that tracks the monthly performance of Mexico’s industrial sector.
- Which sectors contributed most to the improvement in May? The construction sector, specifically building construction, led with a 2.8% monthly expansion driven by private investment.
- What factors influenced the moderate recovery in manufacturing? The recovery in manufacturing coincided with the uptick in Mexican exports to the United States following partial clarification of tariff uncertainty by the Trump administration.
- What does the cumulative decrease in industrial activity indicate? Despite improvements in May, Mexico’s industrial activity has decreased by 1.4% from January to May compared to the same period in 2024.
