Mexico’s factory sector lost steam in August 2026, with the S&P Global Manufacturing PMI dipping below the key 50.0 threshold that separates expansion from contraction. The index declined to 49.80 in August from 51.30 in July, signaling a shift from modest growth to a slight deterioration in manufacturing conditions.
The latest reading, updated on 01 September 2026, suggests that the mid-year resilience seen in July has faded, as demand and production dynamics weakened enough to pull the headline indicator into contraction territory. While the drop is not steep, the move under 50.0 will likely raise questions about the durability of Mexico’s manufacturing recovery and potential knock-on effects for export performance and industrial employment in the months ahead.
