Mexican manufacturing shrinks for third straight month to lowest since 2011

Activity in Mexico’s manufacturing sector shrank for a third consecutive month in August, a survey showed on Monday, as weakening domestic demand and subdued business sentiment weighed on Latin America’s second-largest economy.

The IHS Markit Mexico Manufacturing Purchasing Managers’ Index MXPMIM=ECI stood at 49.0 in August, sliding to the lowest reading in the survey’s nearly 8-1/2 year history and down from 49.8 in July.

A figure above 50 signals expansion in the sector, while a reading below that threshold points to contraction.

The manufacturing sector has contracted six times in the last 12 months.

“The latest PMI figure highlighted the fastest deterioration in the health of the sector since data collection started in April 2011, a worrying sign after (recent GDP data) indicated the economy narrowly avoided entering a technical recession in the second quarter,” said IHS Markit economist Pollyanna De Lima, who wrote the report.

Mexico’s economy posted no growth in the second quarter, edging uncomfortably close to a recession, and underlining the economic challenge facing President Andres Manuel Lopez Obrador who took office in December.

Business sentiment improved marginally in August after hitting a series low in July, the survey showed.

Some of the decisions made by Lopez Obrador, a leftist proponent of economic nationalism, have shaken investor confidence in Mexico, dampening hopes for growth.

Mexico’s central bank underscored that on Thursday saying the environment of uncertainty affecting private investment has “stemmed from the public policy decisions taken by the new administration and by concerns over insecurity and corruption.”

Confidence in Mexico also was rattled at the end of May when President Donald Trump threatened to impose tariffs on all Mexican imports to the United States if Mexico did not curb the flow of U.S.-bound migrants. A deal temporarily averting the tariffs was reached in June.

“Panelists linked lower sales to weak demand, tough market conditions and problems in the automotive sector. Underlying data suggested that the fall in order books was centered on the domestic market, as new export work increased for the first time in three months,” the report said.

Mexico sends about 80% of its exports, much of which are manufactured goods like cars and televisions, to the United States.

The PMI index is composed of five sub-indexes tracking changes in new orders, output, employment, suppliers’ delivery times and stocks of raw materials.

Activity in Mexico’s manufacturing sector shrank for a third consecutive month in August, a survey showed on Monday, as weakening domestic demand and subdued . . .

Follow Us On Google News | Get Our Newsletter



Trending News on PVDN

  • tropical-storm-flossie-hurricane-mexico-pacific-coastTropical Storm Flossie to Strengthen into Hurricane as It Tracks Along Mexico’s Pacific Coast Tropical Storm Flossie is expected to become a Category 2 hurricane by July 2 as it moves parallel to Mexico’s Pacific coast, bringing dangerous rainfall, wind, and surf. Tropical Storm Flossie is on the verge of forming from Tropical Depression Six-E and is forecast to strengthen rapidly into a hurricane as it parallels Mexico’s southwestern…
  • hurricane-flossie-strengthens-july-1-2025Hurricane Flossie will bring tropical storm conditions to parts of Guerrero, Michoacán, Colima, and Jalisco Hurricane Flossie intensifies off Mexico's Pacific coast with winds near 90 mph. Heavy rain, flooding, and tropical storm conditions expected in parts of Guerrero, Michoacán, Colima, and Jalisco. Hurricane Flossie continued to intensify early Tuesday morning as it moved west-northwestward off the coast of southwestern Mexico, prompting tropical storm warnings and watches across multiple states.…
  • puerto-vallarta-rainfall-hurricane-flossie-july-2025Puerto Vallarta braces for torrential rains as Hurricane Flossie gains strength Puerto Vallarta faces a high risk of flooding as Hurricane Flossie intensifies in the Pacific. Torrential rains and overwhelmed drainage systems pose major challenges for the city. Puerto Vallarta, a city wedged between the Sierra Madre mountains and the Pacific Ocean, is no stranger to dramatic weather shifts—but this summer, the skies are testing the…
  • tropical-storm-flossie-mexico-coast-rain-surf-alertCabo Corrientes under tropical storm watch as Flossie expected to Bring Heavy Rain and Dangerous Surf to Southwestern Mexico Tropical Storm Flossie is forecast to strengthen and may impact Mexico's southwest coast from Zihuatanejo to Cabo Corrientes with heavy rain, flooding, and hazardous surf early this week. Tropical Storm Flossie is expected to deliver heavy rains, gusty winds, and dangerous surf conditions to Mexico’s southwestern coast in the coming days, prompting authorities to issue…
  • tropical-storm-flossie-strengthens-mexico-june-2025Tropical Storm Flossie Strengthens Off Mexico’s Pacific Coast, Could Become Hurricane by Tuesday Tropical Storm Flossie gains strength off southwestern Mexico, with hurricane status possible by Tuesday. Storm warnings issued from Punta San Telmo to Playa Perula. Tropical Storm Flossie continues to gain strength off Mexico’s Pacific coastline, prompting tropical storm warnings and watches across several southwestern states. According to the National Hurricane Center (NHC), Flossie is expected…
  • raw-sewage-playa-los-muertos-puerto-vallartaMore Raw Sewage Dumping at Playa Los Muertos Appear to Come From Local Hotel Business owners in Puerto Vallarta are demanding action after raw sewage was discovered leaking onto Playa Los Muertos, raising public health and tourism concerns. A raw sewage leak at Playa Los Muertos in Puerto Vallarta has sparked outrage among local tourist service providers and business owners, who say the contamination is driving away visitors and…
  • cancun-beach-cleanup-sargassumMassive Beach Cleanup to Combat Sargassum in Cancun After a week of the Cancun’s tourism department denying sargassum existed and insisting media photos were fakes, over 600 public servants and volunteers joined the first simultaneous beach cleanup. In a bold step toward environmental preservation and tourism sustainability, Cancun's Municipal President Ana Paty Peralta led the city’s first simultaneous beach cleanup effort this week.…
  • oregon-murder-fugitive-extradited-puerto-vallartaFugitive Wanted for 2008 Oregon Homicide Captured in Puerto Vallarta and Extradited to U.S. Jesús Rodríguez Borrayo, a fugitive for 17 years, was extradited from Mexico to Oregon for his role in a 2008 drive-by shooting that left one dead. He was located in Puerto Vallarta. A man wanted for murder and other violent crimes in the United States for nearly two decades has been extradited after being found…
  • cancun-2025-sargassum-beaches-and-activitiesSargassum won’t ruin your Cancun vacation, there are plenty of clean beaches and tourist activities As the 2025 sargassum season continues through September, visitors to Cancun can still enjoy clear beaches like Playa Delfines and Playa Caracol. As the 2025 sargassum season intensifies across Quintana Roo, tourists are finding it more difficult to enjoy the region’s iconic white-sand beaches without encountering the unsightly brown seaweed. While the influx of sargassum…
  • tropical-wave-7-floods-bacalar-chetumal-emergency-responseTropical Wave Floods Bacalar and Chetumal as Navy and Army Activate Emergency Plans Torrential rains from Tropical Wave 7 flood Bacalar and Chetumal, prompting emergency response from the Navy and Army. Several towns remain isolated in southern Quintana Roo. Torrential rains caused by Tropical Wave Number 7 have flooded multiple communities in southern Quintana Roo, prompting a joint emergency response from Mexico’s Navy and Army. Authorities activated their…
Scroll to Top