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Mexico Fixed Investment Falls 8.9% in August, Worst Yearly Drop Since 2021

INEGI reports broad weakness led by imported machinery with a steep pullback in public investment, pointing to a fragile recovery.

Overview

  • Seasonally adjusted gross fixed capital formation fell 2.7% month over month in August, the largest monthly drop since December 2024.
  • The IMFBCF index stood at 103.9 points, down 8.9% from a year earlier and marking a 12th straight negative annual comparison.
  • Monthly declines were led by imported machinery and equipment (-5.2%), with non-residential construction (-2.1%) and residential construction (-1.4%) also lower.
  • Cumulatively from January to August, fixed investment contracted 7.3%, with public investment down 22.2% and private investment down 5.4%.
  • A preliminary estimate showed GDP contracting 0.3% quarter over quarter in Q3, even as Banxico lifted its 2025 GDP point forecast to 0.6%, and coverage notes new U.S. copper tariffs contributing to business uncertainty.