FX.co ★ Mexico Manufacturing Signals Ongoing Weakness

Mexico's S&P Global Manufacturing PMI experienced a marginal increase, reaching 46.7 in May 2025, up from 44.8 in April. Despite this uplift, the index continued to indicate a solid decline in business conditions, remaining well within contraction territory. New orders declined for the eleventh consecutive month, with a significant drop in export demand attributed to US tariffs. Purchasing activity saw its steepest decline since December 2020, prompting firms to reduce inventories and cut jobs. Output contracted due to both subdued demand and supply-side challenges. Although input cost inflation slightly eased, it remained high. Business confidence showed a slight improvement, yet growth expectations remain historically low.