Mexican Construction Sector Breaks Three-Month Downward Trend
The construction industry in Mexico experienced a 0.1% increase in production value for October, according to data from the National Institute of Statistics and Geography (Inegi), ending a three-month streak of declines.
Key Drivers of Growth
The primary catalyst for this growth was the recovery in transportation and urban development projects, which saw a 0.6% increase compared to the previous month. This improvement came after a 4.4% monthly decline in September.
- Transportation and Urbanization: Projects related to roads, highways, bridges, and railway construction led the growth in this sector.
- Private Sector Construction: Works involving industrial buildings, housing, and hospitals also rebounded with a 0.5% monthly increase, after a 0.1% decrease in September.
These two segments account for approximately 65% of the total construction activities.
Other Sectors’ Performance
Oil and petrochemical-related construction projects, which had experienced double-digit declines in August and September, saw a 6% increase in October compared to the previous month. Water, irrigation, and sanitation projects accelerated their growth from 7.1% to 13%. However, other construction activities (installations in buildings or structure assembly) decreased by 3.8% after a 0.7% increase in September.
Labor Market Trends
Employment and Hours Worked:
- Total Occupied Personnel: The total number of employees in construction firms increased by 0.2% in October compared to the previous month, but annual data still shows a negative trend of -6.8%.
- Hours Worked: Hours worked experienced mixed results, with a 1.4% increase and -7% decrease.
Real Average Remuneration: Real average wages increased by 0.4% in October and 3% annually.
Key Questions and Answers
- Q: What was the main reason for the construction industry’s growth in October? A: The recovery in transportation and urban development projects, which saw a 0.6% increase compared to the previous month.
- Q: How much did the total number of employees in construction firms increase in October? A: The total number of employees increased by 0.2% in October compared to the previous month.
- Q: What was the annual trend for total employment in construction firms? A: The annual trend for total employment in construction firms showed a negative trend of -6.8%.
- Q: How did hours worked perform in October compared to the previous month? A: Hours worked increased by 1.4% and decreased by 7% in October compared to the previous month.
- Q: What was the annual increase in real average wages? A: Real average wages increased by 3% annually.
