Mexico’s Industrial Production Grows by 0.9% in Q1 2024

Mexico’s industrial production witnessed a 0.9% year-on-year increase in the first quarter of 2024, as reported by the National Institute of Statistics and Geography (Inegi) on Friday. This growth was predominantly fueled by the construction sector, which saw a substantial 10.7% year-on-year rise. Following closely was the advancement in electricity generation, transmission, water supply, and gas supply, with a growth rate of 0.8%. However, there were downturns observed in manufacturing (-1%) and mining (-2.7%) industries.

March saw a 3% decrease in industrial production compared to the same month in 2023. This downturn was attributed to the year-on-year increases in construction (5.7%) and electricity generation, water, and gas supply (0.1%), coupled with declines in mining (-5.5%) and manufacturing (-5%). Nonetheless, the monthly indicator of industrial activity (IMAI) surged by 2.1% in real terms with seasonally adjusted figures, indicating a positive momentum in March compared to the previous month.

Despite the monthly setback in mining (-4.1%), construction (9.6%), electricity generation, water, and gas supply (1.9%), along with manufacturing (1.5%), contributed to the overall growth in industrial activity in March. These figures mirror Mexico’s economic performance, which expanded by 3.2% annually in 2023, according to Inegi’s definitive figures. In 2023, Mexico’s industrial production grew by 3.5% annually, primarily driven by the construction sector and witnessing increases across all sectors.

While Mexico’s GDP rose by 3.9% in 2022 across all sectors and by 6.1% in 2021, the government anticipates a minimum of 3% economic growth for Mexico in 2024. These trends highlight the resilience and potential of Mexico’s industrial landscape amidst evolving economic dynamics.

Resumen en Español:

La producción industrial de México creció un 0.9% interanual en el primer trimestre de 2024, liderada por el sector de la construcción. Marzo experimentó una disminución del 3% en la producción industrial respecto al mismo mes de 2023, a pesar de un crecimiento mensual del 2.1% ajustado estacionalmente. Aunque la manufactura y la minería registraron caídas, el gobierno estima un crecimiento económico de al menos un 3% para México en 2024, reflejando la resiliencia y el potencial del panorama industrial mexicano.