Overview and Relevance
In June 2025, Mexico’s manufacturing sector experienced a 0.2% monthly decline, continuing a five-month streak of contractions and marking ten consecutive months of reduction. This information, released by the National Institute of Geography and Statistics (Inegi) in their Monthly Manufacturing Industry Survey (EMIM), highlights the ongoing struggles within Mexico’s manufacturing landscape.
The employment index fell 2% compared to June 2024, extending a 28-month downward trend. Over the first half of 2025, the manufacturing employment index dropped by 1.4%, marking its third consecutive year of decline following reductions of 0.2% and 1.8% in the first half of 2023 and 2024, respectively.
Sectoral Analysis
In June, 14 out of the 22 manufacturing sectors surveyed by EMIM reported monthly job reductions. The five industries with the largest decreases were:
- Wood (-2.1%)
- Printing (-1.9%)
- Electrical accessories and equipment (-1.8%)
- Furniture (-1.1%)
- Machinery and equipment (-1.0%)
Conversely, the five industries with the most growth were:
- Clothing (+2.1%)
- Petroleum derivatives (+0.9%)
- Paper (+0.6%)
- Leather and fur (+0.4%)
- Non-metallic minerals (+0.3%)
Semester Performance
On a seasonal basis, 10 out of the 22 manufacturing sectors showed declines. The five industries with the largest contractions were:
- Transportation equipment (-6.8%)
- Textile inputs and finishing (-5.9%)
- Leather and fur (-4.3%)
- Clothing (-3.9%)
- Wood (-3.3%)
In contrast, the five industries with the most growth were:
- Petroleum derivatives (+9.0%)
- Beverages and tobacco (4.1%)
- Printing (2.7%)
- Electrical accessories and equipment (+2.4%)
- Machinery and equipment (+2.2%)
Vulnerable Sectors
Throughout 2025, the manufacturing employment situation has been characterized by persistent weakness in textile, clothing, and footwear sectors. This trend has persisted for three years and prompted various protective tariff measures from the federal government.
Moreover, uncertainty surrounding the United States’ trade policies has negatively impacted the transportation equipment industry. The Industrial Activity Index (IMAI) reported a 2.1% accumulated decline in this sector’s activity by June.
Key Questions and Answers
- What is the current state of Mexico’s manufacturing sector? The manufacturing employment index has experienced a 1.4% decline in the first half of 2025, marking its third consecutive year of reduction.
- Which sectors are facing the most challenges? The textile, clothing, footwear, and transportation equipment industries have shown persistent weakness and decline.
- What factors are contributing to these challenges? Persistent weakness in specific sectors and uncertainty surrounding U.S. trade policies are key contributors to the ongoing struggles in Mexico’s manufacturing landscape.
