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Mexico’s Industrial Output Falls Again in September as Construction Slumps

The figures confirm a weak third‑quarter GDP reading following the fade of the public‑works impulse.

Overview

  • Industrial activity fell 0.4% month on month and 3.3% year on year in September, according to INEGI’s IMAI.
  • The decline was driven entirely by construction, which dropped 2.5% on the month, with civil engineering works down roughly 27% so far this year.
  • September marked the fourth consecutive monthly drop and the seventh straight annual contraction, leaving January–September output down 1.8%, the weakest since 2020.
  • Other components posted small monthly gains — mining up 0.7%, manufacturing up 0.2%, and utilities up 0.4% — yet show broader weakness, including mining at -8.4% year to date and manufacturing at -0.8% year on year.
  • Analysts from Banamex, Monex and Econosignal point to reduced public investment, domestic policy uncertainty and recent U.S. tariff measures as key headwinds for late‑2025 growth.