Mexico economy shows mixed signals amid manufacturing weakness

Mexico's economy is showing mixed performance for the second quarter of 2026. While aggregate supply grew 5.7% year-over-year and GDP rose 1.9%, the manufacturing and automotive sectors are facing significant challenges. Manufacturing sales fell to an annual rate of 1.3% in the first half of the year, and the transportation equipment sector saw a 6.9% decline.

Employment in the manufacturing sector has also struggled, with a loss of approximately 292,000 jobs since 2022. Economic growth projections for 2026 have been adjusted downward to between 1.3% and 1.5% due to factors such as rising international oil prices, high interest rates in the United States affecting external financing, and uncertainty surrounding the T-MEC trade agreement.

Despite these headwinds, certain areas show resilience. Public investment grew by 14.7%, and the construction sector saw a 6.7% increase. The computing, communications, and electronics segment also reported a 4.4% rise in employment.