Manufacturing production dips in July despite growth in exports

Manufacturing accumulation measurement declined by 2.7% successful July, according to authoritative information from the National Institute of Geography and Statistics (INEGI). The slowdown comes aft 2 months of growth, and contrasts sharply with the increasing worth of Mexico’s manufacturing exports.

Production measurement besides decreased year-over-year, declining 1.1% compared to the aforesaid period successful 2024.

Both interior and outer unit have contributed to the industry’s slowdown. Economic uncertainty, debased levels of productive investment, and reduced home and planetary request person weakened the sector. Inflationary pressures and planetary risks person further constrained manufacturing activity, specially successful subsectors specified arsenic textiles, wood and apparel.

INEGI besides shows a 0.2% alteration successful manufacturing employment, marking the sixth consecutive period of decline. Self-employed workers (independent contractors) were peculiarly affected, experiencing a 2.1% diminution successful July. The aforesaid self-employed workers person experienced a melodramatic 16% driblet successful employment since past year.

The fig of hours worked fell by 0.2% successful July compared to June, and 2.2% compared to 2024. Meanwhile, radical employed successful the manufacturing manufacture declined 0.2% successful the monthly comparison, which is equivalent to 19,000 jobs mislaid successful July. The manufacture has mislaid 221,000 jobs since July 2024, a 2.3% decline.

The textiles and apparel assemblage are the hardest deed (down betwixt 8-9%), on with the manufacturing of textile inputs and textile finishing (down 9%). Other manufacturing industries, specified arsenic lipid and metals, weathered the interaction better.

Industrial enactment successful Mexico falls for 4th consecutive month

The lone affirmative information constituent was a 0.7% monthly summation and a 6% yearly summation successful mean existent wages wrong the manufacturing industry. With an mean wage of 12,600 pesos, this translates to an summation of conscionable 90 pesos per idiosyncratic per month.

Overall, the sector’s 9.6 cardinal employees received an further 865 cardinal pesos (US $47 million) successful payroll.

Exports up successful July

The manufacturing production’s slowdown sharply contrasts with INEGI’s information regarding July exports, which grew 4% successful worth compared to the aforesaid period past year, reaching US $56.7 cardinal successful full exports. Mexico’s exports were worthy US $54.78 cardinal successful July 2024, which successful crook accrued by 14.7% compared to the aforesaid period of the erstwhile year.

Interestingly, this maturation is chiefly attributed to the manufacturing sector, which contributed much than 90% of full export value, amounting to US $52.3 cardinal successful July alone.

Manufacturing exports offset the contractions successful export worth for different sectors, specified arsenic oil, which fell 23% year-over-year to US $1.9 billion, and the automotive sector, which besides saw export worth diminution 7% to US $15.9 billion. Within the latter, exports to the United States fell 9.2%, though a 4.9% summation was observed to different destinations.

With reports from El Economista