Mexico: Industrial Activity Experiences Fourth Decline in Six Months in April

With the April results, industrial activity is now 1.8% below its most recent peak, recorded in October 2023.

Ignacio Teson•Wednesday, June 12, 2024•1 min read

Mexico’s industrial activity faced another decline in April, marking its fourth decrease in the past six months. This was primarily driven by a significant drop in manufacturing output, which could not be offset by gains in the construction sector.

The National Institute of Statistics and Geography (INEGI) reported a seasonally adjusted 0.5% decrease in the Monthly Industrial Activity Indicator (IMAI). This follows a 0.5% increase in March, which had been propelled by a brief improvement in the manufacturing sector, the largest component of industrial activity. Other declines were noted in November (-1%), December (-0.7%), and February (-0.1%).

With the April results, industrial activity is now 1.8% below its most recent peak, recorded in October 2023.

In April, manufacturing acted as a drag on the indicator, leading the decline among industrial sub-sectors with a 1.5% drop. The electricity, gas, and water sector also fell by 1.5%, and mining decreased by 0.3%. Conversely, construction grew by 1.8%, marking two consecutive months of increases.

Within the manufacturing sector, 19 of the 21 branches tracked by INEGI experienced monthly declines. The most significant drops were in the petroleum products industry (-11.6%), textile inputs industry (-8.5%), clothing industry (-4.8%), metal products industry (-4.6%), and furniture industry (-4.2%).

When looking at the broader picture, a deceleration is evident in the industrial sector. From January to April, the IMAI accumulated an annual increase of 1.9%, which is lower than the 2.4% growth observed during the same period in 2023.

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ABOUT THE AUTHOR See More

Ignacio Teson

Economist and Financial Analyst

Ignacio Teson is an Economist and Financial Analyst. He has more than 7 years of experience in emerging markets. He worked as an analyst and market operator at brokerage firms in Argentina and Spain.