The decline in order volume and the timeliness of supplier input delivery influenced the monthly drop in manufacturing orders in July 2026, according to the National Institute of Statistics and Geography (Inegi) and the Bank of Mexico (Banxico) .
In the seventh month of the year, the Manufacturing Orders Indicator (IPM) stood at 50 units , which meant a decrease of 0.1 points compared to June 2026.
Conversely, the IPM, which presents the expectations and perception of business executives on the performance of the manufacturing sector in Mexico, registered a positive performance in its annual measurement, with a slight increase of 0.2 points .
Within the indicator, monthly declines were recorded in two of the five components that make it up .
In July 2026, orders saw the largest decline , falling 5.7 points compared to June. This was followed by a decrease of 0.1 points in the availability of supplies from vendors .
Conversely, input inventories increased by 4.1 points on a monthly basis; while production and total employed personnel advanced by 3.8 and 0.2 units, respectively, on a monthly basis.
By activity groups, the transport equipment subsector fell 1.6 points year-on-year; while petroleum and coal derivatives, the chemical, plastics and rubber industry advanced 2.1 units year-on-year.
US tariffs have impacted the Mexican manufacturing industry by decreasing orders, especially for transportation equipment, which affects the country’s automotive sector.
This is compounded by an economy that is only just beginning to show signs of recovery. In the second quarter of 2026, Gross Domestic Product (GDP) grew by 1.51% after a contraction of 0.62% in the first quarter of the year.
“It is estimated that approximately two-thirds of the quarterly growth was due to the World Cup effect, which boosted retail trade and service consumption, while the rest of the growth was the result of a rebound effect after the contraction observed in the first quarter,” explained Grupo Financiero BASE .
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