Mexico Factory Activity Contracts for 13th Month

Mexico’s S&P Global Manufacturing PMI rose to 49.1 in July 2025, compared to 46.3 in June, indicating a thirteenth successive deterioration but the softest contraction since January.

The rise reflects a marginal easing in new orders, which firms attributed to lingering US tariffs and heightened competition from Chinese imports.

Factory output also fell, albeit at the mildest pace since February, while purchasing activity declined for the seventh consecutive month as companies sought to adjust inventories amid persistent cost pressures.

Employment decreased for the fifteenth month running, though at the slowest rate in the current period of job shedding.

Input prices continued to climb at the steepest rate in three months, yet most producers absorbed these higher costs, with selling prices rising only marginally.

Despite the ongoing downturn, sentiment improved to an eight-month high, though growth expectations remain subdued within the context of the historical series.