Mexico's industrial production expanded by 0.5pc in July from the previous month, driven by solid advances in construction and manufacturing.
The July increase in Mexico's industrial activity indicator (IMAI), reported Friday by statistics agency Inegi, marked the third monthly gain in four months and gave further indication of recovery in construction. The result follows 0.2pc expansion in June and a 0.7pc contraction in May.
Manufacturing rose by 0.7pc in July, only its third gain of the year, with 12 of its 21 subsectors showing gains. The sector contracted 0.6pc in June after a 0.1pc drop in May.
The heavily weighted transport equipment segment rose 1.2pc in July after falling 3.1pc in June, its first decline since January. Output of computer, communications and electronic equipment rose by 1.8pc, marking five consecutive months of expansion. Output of electrical generating equipment fell by 0.2pc
Mining, in contrast, declined 1.8pc, with "related services" acting as the main drag, declining 15.2pc in July, while oil-related and non-oil extraction each fell by 0.3pc.
Generation, transmission and distribution of electricity, natural gas and water was unchanged on the month in July, after rising 0.9pc in June, the sector's only monthly expansion of 2026.
Construction, which accounts for fifth of the index, expanded by 0.9pc in July after growing 3pc in June.
Within the sector, new building construction rose by 1.3pc in July after a upward revised 5pc in June. Civil engineering, however, fell for a second consecutive month, down 3.8pc in July after a revised downward 3.4pc decline in June, suggesting slower going on major infrastructure projects, such as Mexico's Ps157bn ($7.7bn), nearly 1,900-mile railroad expansion initiative. The specialized construction segment, meanwhile, rose 3.1pc in July after modest declines in June and May.
Industrial production pushed farther into positive territory on an annual basis at the start of the third quarter, growing 2.7pc in July in unadjusted terms from a year prior. All four main sectors posted gains in July with construction the top performer, up 7.3pc, followed by manufacturing and mining, both rising 1.6pc, and utilities rising just 0.6pc.
By James Young
