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Mexico’s Fixed Investment Falls 2.7% in August, Extending Yearlong Slide

Weak imported equipment and non‑residential building, together with deep cuts in public spending, point to a broader cooling flagged by a preliminary third‑quarter contraction.

Overview

  • Inegi reported an 8.9% annual drop in August on a seasonally adjusted basis, marking 12 consecutive year‑over‑year declines.
  • On the month, fixed investment fell 2.7%, the steepest decline since December 2024 after July’s 1.6% rise.
  • Imported machinery and equipment led the monthly fall (-5.2%), with construction down on both non‑residential (-2.1%) and residential (-1.4%) segments.
  • Year over year, non‑residential construction plunged 18.5% while residential construction rose 10.0%, highlighting stark sectoral divergence.
  • Public investment tumbled about 21% year over year in August versus a 9% drop in private, and total investment is down 7.3% in January–August; some outlets report a 10.4% annual fall using original (non‑seasonally adjusted) data, and the slump aligns with Inegi’s preliminary -0.3% quarter‑over‑quarter GDP estimate for Q3.