Mexico: Economic activity shrinks in January
Latest reading: Economic activity fell 0.9% in seasonally adjusted month-on-month terms in January, following 0.2% growth in the previous month. January’s reading was the weakest since December 2024.
Relative to the prior month’s figures, readings in January softened for the services sector (-0.6% in seasonally adjusted month-on-month terms vs +0.1% in December), the industrial sector (-1.1% vs +0.1% in December) and the primary sector (-3.7% vs +6.4% in December).
In annual terms, economic activity declined 0.3% in January, following a 3.3% increase in the previous month.
Panelist insight: On the reading and outlook, Itaú Unibanco analysts said:
“The agricultural sector showed a negative performance, reflecting lower production of some fruits and vegetables, as well as increased costs due to disruptions in the transportation of goods. The war in the Middle East has driven up fertilizer costs, adding further pressure to the sector going forward. The services sector was affected by transportation issues, reflecting the decline in manufacturing trade. Toward the second half of the year, we anticipate improved economic performance, assuming trade policy uncertainty subsides and the government increases public investment.”