Mexico's industrial production expanded by 0.2% in June from the previous month, with construction showing signs of recovery. This followed contractions in May and expansions in April, contributing to a net increase in the second quarter.
The rebound in Mexico's industrial output, particularly in construction, signals a potential stabilization of economic activity after recent contractions, though manufacturing weakness persists.
Mexico's industrial production expanded by 0.2% in June from the previous month, with gains in two of the second quarter's three months as construction showed signs of a tentative recovery. The June increase in Mexico's industrial activity indicator (IMAI), reported by statistics agency Inegi, followed a revised 0.7% contraction in May and a 2.1% expansion in April. Industrial activity posted a cumulative net increase of 1.6% over the second quarter. The June result matched the consensus forecast cited by Mexican bank Banorte.
Construction, which accounts for 19% of the IMAI, expanded by 3% in June, rebounding from a 3.7% decline in May after a 7% increase in April. Within the sector, building construction rose by 4.8% in June after falling 5.5% in May. Civil engineering fell by 2.7%, reversing a 4.5% May increase.
Weakness remained concentrated in manufacturing, which declined by 0.6% in June after a 0.1% drop in May and a 1.1% increase in April. Ten of 21 manufacturing subsectors contracted in June. The heavily weighted transport equipment segment fell 3.2% in June, its first decline since January and the steepest since July 2025. Machinery and equipment output fell by 1.4% after a 3.1% May increase, while electronic equipment expanded by 0.5% after declining 0.1%.
Mining expanded by 0.6% in June, led by a 10.5% increase in related services, with the oil component also positive at 0.2%. This follows 0.3% expansion in May and a 0.2% decline in April. Generation, transmission and distribution of electricity, natural gas and water rose by 0.9% in June, marking its first monthly expansion of 2026 after contraction of 0.4% in May.
Industrial production returned to positive territory in annual terms, expanding 1.7% in June from a year prior, with all four sectors posting increases. Mining was the top performer, rising 6.6%, followed by construction at 5%. Utilities rose by an annual 0.7%, with manufacturing edging 0.1% higher.