Updated
Updated · WTVB · Jul 23
Mexico Economy Contracts in May as Construction Slumps 3.7%
Updated
Updated · WTVB · Jul 23

Mexico Economy Contracts in May as Construction Slumps 3.7%

3 articles · Updated · WTVB · Jul 23

Summary

  • Mexico’s economic activity fell in May from April, reversing April’s revised 1.4% jump — the strongest monthly expansion in more than five years.
  • A 3.7% drop in construction helped drive declines in the secondary sector, while the primary sector also weakened and pulled the economy lower.
  • On an annual basis, activity rose 1.1%, slightly above the 1% forecast, while the year-on-year reading showed a 0.3% decline versus expectations for a 0.4% drop.
  • The mixed data is likely to reinforce caution over Latin America’s second-largest economy after a sharp but short-lived rebound in April.

Insights

Despite a shrinking economy in May, auto exports are surging; what hidden forces are keeping Mexico's fragile markets afloat in 2026?
With construction plunging and trade uncertainty looming, is Mexico's sudden economic contraction a warning sign for North American supply chains?