FX.co ★ Mexico Fixed Investment Continues to Fall

In March 2025, Mexico's gross fixed investment experienced a slight decline of 0.2% compared to the previous year, marking the seventh consecutive month of contraction. However, this figure reflects a notable improvement compared to February's sharp 7.8% decrease. Investment in machinery and equipment saw a reduced decline rate of 0.4%, significantly better than the previous month's steep 10.4% drop. This downturn was attributed to ongoing weaknesses in both domestic production, which fell by 0.7% compared to February's 3.2% decline, and in imports of capital goods, which decreased by 0.1%, a stark improvement from the 15.1% fall in the prior month. Meanwhile, construction spending dipped by 0.1%, an improvement from the 5.2% decrease observed in February. Notably, a 15.9% decline in nonresidential construction was offset by a strong 20.5% increase in residential construction. When seasonally adjusted, gross fixed investment rose by 0.3% in March, following a 0.1% increase in February. This suggests a slight recovery in investment momentum despite the ongoing overall subdued trend.