In May, industrial production in Mexico registered year-on-year growth of 1.0%, supported by a notable performance in construction, according to official data. This growth, although below the 1.4% predicted by Banorte , was in line with market consensus expectations, according to an analysis document from the financial institution.
In that sense, industrial production showed a monthly increase of 0.7% , the best result in 11 months, surpassing the 0.4% drop recorded in April.
The construction sector was the main driver of this growth, with an increase of 2.5%, driven by strong interest in industrial parks and buildings.
Mining also recorded 2.0% growth, despite persistent challenges in the sector. On the other hand, manufacturing remained unchanged, with 14 of its 21 subsectors showing increases.
Banorte predicts that industrial dynamism could moderate in the coming months due to greater challenges in the construction sector . However, manufacturing is expected to maintain a positive performance, supported by domestic demand and connections with US industry.
The report highlights that the construction sector will continue to benefit from public works and the construction of industrial and commercial spaces , with a growth expectation of 3% to 5% towards the end of 2024, according to the Mexican Chamber of the Construction Industry .
In the case of manufacturing , it is anticipated that some branches will continue to depend on the performance of related industries in the United States, with the potential to gain ground against Chinese competitors due to trade tensions.
The outlook for the second half of 2024 suggests a moderation in industrial growth, although with favorable prospects for several sectors, including automotive, which continues to benefit from robust global demand.
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