FX.co ★ Mexico Industrial Output Falls More than Expected

Mexico's industrial production fell 0.7% year-on-year in May 2026, reversing a 2.3% increase in April and coming in below market expectations of a 0.1% decline, as weakness was broad-based across sectors. The downturn was driven mainly by a 1.5% contraction in manufacturing output, following a flat reading in the previous month, reflecting softer activity across most industries, particularly in the manufacturing of computers and communication equipment (-7.5%). Utilities output dropped further, down 0.9% after a 0.4% decline, while construction activity fell 0.3%, erasing a strong 10.4% gain in April despite a sharp rise in civil engineering works (15.9%). By contrast, mining and quarrying output growth accelerated to 3.9% from 3.4%, supported by a surge in mining-related services (51.3% vs 23.7%). On a seasonally adjusted month-on-month basis, overall industrial activity decreased 0.8% in May, following a 2.1% increase in April.