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Mexico Posts Modest Monthly Rebound in Consumption and Investment

Gains were driven by higher spending on imported goods and machinery purchases; weak consumer confidence, job losses and a T‑MEC review could curb further recovery.

Overview

  • INEGI data show private consumption rose 1.2% month‑on‑month in March and 3.1% year‑on‑year, reflecting the first monthly gain after two months of declines.
  • Gross fixed capital formation increased 0.4% from February in March but remained 3.1% below March 2025, extending a stretch of annual investment contractions.
  • The consumption uptick was concentrated in imported goods, and the investment rise was driven by machinery and equipment, with machinery imports up about 3.3% month‑on‑month.
  • Underlying domestic signals stayed weak in March, as consumer confidence fell, ENOE recorded a net loss of 116,016 jobs, remittances rose in dollars but fell in peso value, and formal wages showed modest real gains.
  • Analysts warn that the T‑MEC review, high informality and a pattern of FDI driven by reinvested earnings rather than new projects make sustained investment and job growth uncertain, which could slow longer‑term capacity gains.