FX.co ★ Mexico Factory Activity Slips Into Contraction

Mexico's S&P Global Manufacturing PMI dipped to 49.6 in September 2025, down from 50.2 in August, indicating a slight decline in manufacturing activity as it fell below the neutral 50.0 threshold. This shift highlights a continued rise in new orders for the second consecutive month, attributed to enhanced demand from clients in the construction sector and progress on pending projects, although some respondents still mentioned the adverse impact of US tariffs. Purchasing activity saw an increase, marking the first growth in input buying in 2025 after a series of declines. Employment dropped once more, with job losses accelerating, and production contracted at a faster rate than observed in August. There was a significant surge in input costs, reaching one of the highest rates recorded, while selling prices rose only slightly, as producers faced challenges in fully transferring the increased costs to customers. Business sentiment showed an improvement from August to September, albeit remaining historically low.