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01.09.202615:16:34UTC+00Mexico Factory Activity Weakens

The S&P Global Mexico Manufacturing PMI declined to 49.8 in August 2026 from 51.3 in July, indicating a renewed deterioration in operating conditions. The main drag came from a reduction in factory output, which registered its sharpest contraction in eight months, as firms reported subdued market conditions, material shortages, and shipping delays related to the conflict in the Middle East.

Demand also softened. Growth in new orders eased from recent peaks, while new export orders fell at the fastest pace so far in 2026. In response, manufacturers scaled back their purchasing activity, marking the first decline in three months. Stocks of purchases also decreased, whereas inventories of finished goods rose slightly.

Cost pressures continued to moderate, with input cost inflation slipping to a five-month low, though remaining elevated amid uncertainty related to US tariffs and the Middle East. Looking ahead, business sentiment turned pessimistic, as firms cited concerns about broad market uncertainty.

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