FX.co ★ Mexico's Manufacturing Activity at Lowest Level Since Pandemic

In April 2025, the S&P Global Mexico Manufacturing PMI dropped to 44.8 from March's 46.5, indicating the most significant decline in the sector since February 2021 and marking a full ten months of contraction. The imposition of U.S. tariffs and a reduction in client investment resulted in the most significant decline in new export orders since early 2021. This decrease subsequently led to the most rapid reductions in both output and sales volumes experienced in over four years. For the first time since November 2020, business sentiment turned pessimistic regarding future output due to trade policy concerns, weak demand, and persistent cost pressures. Employment rates decreased more quickly, as companies opted not to renew contracts and shifted some staff to part-time positions. Input costs surged at their fastest pace in two and a half years, driven by the depreciation of the peso and rising prices for essential materials, although the inflation of selling prices remained moderate. Furthermore, purchasing activities and pre-production inventories saw a decline, while backlogs increased as new orders faced cancellations or delays.