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Mexico’s August Activity Beats Forecasts as Industrial Slump Persists

Economists still see next week’s preliminary third‑quarter GDP shrinking, reflecting industrial weakness despite a weather‑aided farm rebound.

Overview

  • INEGI’s IGAE rose 0.6% month on month in August and was unchanged year on year, after a 0.9% drop in July.
  • The print exceeded INEGI’s IOAE projection, which had estimated only 0.1% monthly growth.
  • Primary activities jumped 14.5% on favorable weather and base effects, while services expanded 0.5%.
  • Industrial output fell 0.3% for a third straight month, led by a 2.2% decline in construction and a 0.7% drop in mining.
  • Analysts expect next week’s preliminary Q3 GDP to show contraction, and 2025 growth views cluster near 0.5% versus SHCP’s 0.5–1.5% range.