FX.co ★ Mexico Factory Activity Contracts for 3rd Straight Month

In November 2025, Mexico’s S&P Global Manufacturing PMI decreased to 47.3, down from 49.5 in October, highlighting a more pronounced decline in operational conditions and marking the lowest level since June. This downturn maintains the index below the pivotal 50-mark for the third consecutive month. New orders experienced a significant drop after a period of three months of expansion, with the rate of decline accelerating to its most rapid since mid-year. Additionally, new export orders declined for the twenty-first consecutive month, affected by a decrease in demand from the US. Manufacturing output contracted for the seventeenth month, reaching its steepest decline since May. Consequently, companies reduced their purchases and trimmed their workforce through technical breaks and non-renewals of temporary contracts, representing the most substantial job reductions in nearly four years. Inventory of finished goods increased as stockpiles of raw materials dwindled. Input costs rose due to increased freight and material expenses, tariffs, and unfavorable exchange rates. However, output prices only saw a slight increase as companies opted to absorb these additional costs. Although business confidence remained positive, it fell to its lowest point in three months.