The S&P Global Mexico Manufacturing PMI inched up to 47.1 in February 2026 from 46.3 in January, but continued to indicate a marked deterioration in operating conditions. The survey signaled a sixth consecutive monthly decline in demand for Mexican goods. New orders contracted again, though at a slower pace, and output also fell further, with the rate of decline less severe than at the start of the year.
New export orders continued to decrease, reflecting subdued demand from Europe and the US, although the contraction slowed to a three-month low. US tariffs and currency movements were highlighted as key factors pushing up input costs. While cost inflation eased compared with January, it remained high by historical standards. Firms persisted in passing on higher costs to clients, but the rate of output price inflation moderated to its weakest level in a year.
Job shedding accelerated to a marked pace as companies reduced staffing levels. Meanwhile, business confidence improved slightly, with firms turning optimistic about the year-ahead outlook following a brief spell of pessimism.
