Overview

• Fixed investment rose 1.6% month over month in July, led by a 4.9% jump in machinery and equipment and strong gains in imported transport equipment, according to INEGI.
• Despite the monthly uptick, investment fell 7.2% from a year earlier, with construction down 7.5%, machinery and equipment down 5.9%, private investment off 4.6% and public investment down 22.7%.
• Finance Ministry figures show physical investment down 33.7% in real terms in January–August, the steepest decline for that span since 1990, reflecting cuts and underspending.
• Construction weakened further on the month in July, sliding 1.3% as non-residential work fell 1.9% and residential dipped 0.4%.
• Household demand softened as private consumption fell 0.3% from June and 0.1% year over year in July, with spending on domestic goods and services lower and purchases of imported goods higher.