Amid uncertainty over US tariff policy, Mexican business confidence fell 0.1 points in May 2026 compared to April; it also decreased 0.5 units year-on-year, according to the Global Business Confidence Opinion Indicator (IGOEC) , which stood at 48.2 points , as announced this Monday by the National Institute of Statistics and Geography (Inegi) .
This was due to the caution shown by business owners in the manufacturing, construction, and trade sectors, reflecting pessimism, as the IGOEC fell below the 50-unit threshold.
In this regard, the Business Confidence Indicator (BCI) for manufacturing industries stood at 47.5 points in May, a decrease of 0.4 points compared to April. Within this indicator, the component that saw the largest decline was the perception of a favorable time to invest, with a monthly drop of 1.8 points.
The Construction Energy Efficiency Index (ICE) was 47.8 units in May 2026. This represents a decrease of 0.3 points compared to the previous month. With this figure, the indicator has remained below the 50-point threshold for 21 consecutive months.
In the cycle, the Commerce ICE fell 0.7 points compared to the previous month, settling at 48.3 units . All its components experienced declines compared to last April, with the most significant drop, at 1.8 points, being the most opportune time to invest .
In the reference month, the Business Confidence Index (BCI) for private non-financial services increased by 0.4 points compared to April 2016, reaching 48.4 units . One of its components showed a negative performance. The current economic situation of the company experienced the largest decline, falling by 0.7 points month-on-month.
According to the Global Business Confidence Opinion Indicator, three of the four sectors it covers showed declines during May 2026.
This uncertainty has been generated, among other reasons, by international factors such as tariffs around the world and the conflict in the Middle East, as well as by internal factors, such as a weakening of the Mexican economy and private consumption.
Manufacturing orders also performed negatively
Meanwhile, the Manufacturing Orders Indicator (IPM), which tracks the performance of the manufacturing economy in Mexico, also showed declines on a monthly and annual basis during May 2026, mainly due to a contraction in orders and production, reported Inegi and the Bank of Mexico (Banxico) .
In the fifth month of the year, the MPI stood at 49.2 points , a decrease of 1.1 points compared to April. Its annual measurement also registered a negative figure, with a decline of 1.4 points .
Within it, four components that make up the IPM registered declines and only one had a positive performance in the monthly comparison.
In May 2026, orders fell by 3.3 points compared to April. This was followed by a monthly decrease of 0.3 points in production . Total employment and on-time delivery of supplies from suppliers each decreased by 0.1 points compared to April 2026. Conversely, supplies showed a monthly increase of 0.1 points.
By subsector, the transportation equipment sector saw the largest year-on-year decrease , with a drop of 5.6 points. Meanwhile, non-metallic minerals and basic metals experienced the largest increase, rising 4.4 points year-on-year.
According to Banxico, knowing the Manufacturing Orders Indicator is crucial because it provides a preview of economic activity in Mexico.
“An increase in the MPI suggests that companies are receiving more orders and producing more, which can have a positive impact on the economy and investor confidence,” he explained.
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