02.01.202617:23:31UTC+00Mexico Factory Activity Contracts Sharply in December

The S&P Global Mexico Manufacturing PMI decreased to 46.1 in December 2025 from 47.3 in the previous month, marking the most significant decline since April and representing the fourth consecutive month of contraction. New orders saw a decline, with the rate of this contraction accelerating to its fastest since June. Export orders also continued to decrease, marking 22 months on a downturn, and experiencing the steepest decrease since July. Factory output remained sluggish due to weak investment, decreased sales, and a slowdown in the construction and mining sectors, with December showing the most significant contraction since April. Despite the lackluster demand, firms further increased selling prices as cost pressures persisted, resulting in output price inflation climbing to its highest point in over a year. Although input cost inflation slowed to its lowest rate since June, it still exceeded the long-term average. In light of rising costs and weak demand, manufacturers significantly scaled back their purchasing activity and continued to reduce employment, as current staffing levels surpassed the needs for production.