Mexico's industrial production rose by 0.2pc in December from the previous month, marking a third consecutive expansion driven by construction.
The increase in the industrial activity indicator (IMAI), reported by statistics agency Inegi, follows monthly gains of 0.6pc in November and 0.9pc in October. These expansions came after revised contractions of 0.2pc in both September and August and a 1pc decline in July.
Despite the late-year rebound, full-year 2025 industrial output fell by 1.3pc from 2024, Inegi said. All three major components posted annual declines, with construction declining by 1.0pc, manufacturing by 0.5pc and mining by 6.5pc.
The December result exceeded Mexican bank Banorte's forecast of flat growth, which had included an expected 1.1pc contraction in construction.
But construction expanded by 1.2pc in December, following a revised 1.7pc increase in November and a 4.2pc surge in October, marking three months of growth after four consecutive declines.
Within construction, civil engineering led gains, rising by 6.2pc in December, slightly above November's revised 6.1pc expansion. Banorte said the strength reflects momentum in public works projects despite "lower government spending on physical investment" during the month.
Mexico advanced several large infrastructure initiatives in the fourth quarter, awarding tenders tied to plans to build 3,000km (4,800 mi) of new passenger rail routes by 2030.
Banorte expects construction to remain a key driver of industrial activity in 2026, supported by Ps722bn (US$42bn) in additional public infrastructure investment under President Claudia Sheinbaum's 2026–2030 national development plan.
New building construction rose a modest 0.2pc in December, slowing from a revised 1.4pc in November and 5.9pc in October.
Manufacturing output edged 0.1pc lower in December after a revised 0.6pc increase in November, with 16 of 21 subsectors contracting. Beverages and tobacco fell by 2.4pc, packaged food declined by 1.8pc, while transport equipment — including autos — edged 0.1pc higher.
Mining rose by 0.5pc in December after being flat in November. Oil and natural gas production increased by 1.6pc, marking a fourth consecutive monthly gain and the segment's strongest expansion since September 2021, amid recent efforts by state-owned Pemex to boost output through new partnership schemes. Non-hydrocarbon mining fell by 1.7pc following revised 1pc growth in November.
