Mexico industrial activity grows despite manufacturing sector decline

Mexico's industrial activity showed a growth trend of 4.2 percent in June, marking the third consecutive month of increases according to INEGI data. This quarterly growth is the highest seen in over two years. The mining sector led this expansion with a 7 percent increase, followed by construction at 4.2 percent.

Despite the overall industrial rise, the manufacturing sector faces significant challenges. Manufacturing production volume fell by 2.4 percent annually in June. Furthermore, employment within the manufacturing sector declined for the sixth consecutive month in June 2026, with a yearly variation of -1.5 percent. On average, manufacturing personnel fell by 2.6 percent during the first half of 2026 compared to the same period in 2025.

The downturn in manufacturing is particularly evident in the production of furniture, electrical accessories, and transport equipment. Analysts attribute these difficulties to reduced dynamism in the United States economy, commercial uncertainty, and investment hesitation related to the USMCA (T-MEC) review.