Mexico industrial activity grows in August amid rising vacancy rates

Mexico's industrial activity showed growth in August 2026, with the Monthly Industrial Activity Indicator (IMAI) rising 0.6% monthly and 3.6% annually. This growth was primarily driven by a 1.2% monthly increase in manufacturing and energy sectors, while mining saw a 1.6% decline. Despite the monthly uptick, the cumulative activity for January-August 2026 showed a slight decrease of 0.3% compared to the previous year.

Simultaneously, the industrial real estate market is experiencing a shift. While gross absorption reached 4 million square meters between January and September, the national vacancy rate rose to 5.5%, more than triple the 1.8% historic low recorded in mid-2023. This increase in available space is attributed to international trade tensions and investment uncertainty.

On the labor front, the business sector is pushing for changes to wage policies. The Consejo Coordinador Empresarial (CCE) has proposed limiting future minimum wage increases to inflation rates, suggesting the abandonment of the 'Monto Independiente de Recuperación' (MIR) mechanism. This comes as micro, small, and medium-sized enterprises (MSMEs) prepare for a reduction in the weekly workweek starting in 2027, which is projected to increase payroll costs by up to 20% for some service and commerce businesses.