FX.co ★ Mexico Economic Activity Unexpectedly Falls

In May 2025, Mexico's economic activity index experienced a year-on-year contraction of 0.2%, following a revised decrease of 1.7% in April, and falling short of market projections anticipating a 0.5% growth. The industrial production sector recorded a decline of 0.8%, a noticeable improvement from the 4% shrinkage observed in the previous month. Within this sector, mining production fell by 8.4%, worse than the previous month's 7.7% decrease, and utilities experienced a decline of 3.7% compared to the previous 1.8% drop. Notably, the manufacturing sector showed signs of recovery, posting a modest increase of 0.5% following a 2.5% downturn in April. Concurrently, the output in the services sector contracted by 0.2%, building on April's decline of 0.5%. This contraction was significantly influenced by steep declines in the wholesale trade sector, which saw a drop of 9.9% compared to the previous 8.4% fall, as well as in accommodation and food services, which shrank by 1.6% following a 1.9% decrease. The cultural, sporting, and recreational activities also saw a modest decline of 0.2%, in contrast to a 7.5% increase in the preceding month.