FX.co ★ Mexico Manufacturing PMI Holds Steady in July

The S&P Global Mexico Manufacturing PMI held at 51.3 in July 2026, indicating a second consecutive monthly improvement in operating conditions. New orders rose at their fastest pace since November 2023, supported by stronger domestic demand, while export orders slipped back into contraction. Factory output remained in decline, extending a downturn that began two years earlier, reflecting continued weakness in the automotive and construction sectors and the impact of plant maintenance. Stocks of finished goods fell, and pre-production inventories also declined amid supplier delivery delays. Vendor performance deteriorated further due to shipping bottlenecks, supplier shortages and the conflict in the Middle East, prompting firms to increase input purchases at the fastest rate in nearly two and a half years. Input cost inflation stayed elevated, driven by higher fuel, materials and transport costs, as well as tariffs. Business confidence remained subdued, weighed down by concerns over cash flow, insecurity, international competition and geopolitical risks.