Industrial activity in Mexico grew 2.4% in annual seasonally adjusted terms in July, the best result in almost three years.

Month-over-month growth was 0.5%, according to the national statistics agency INEGI, which published the data last Friday.

The construction sector was the driving force behind the annual growth, the strongest since October 2023, although the mining, manufacturing and energy sectors also made gains.

Construction activity increased 6.7% annually in July, mining activity grew 1.6% and manufacturing activity rose 1.3%. Activity related to electricity, gas and water supply increased 0.7% compared to July 2025.

On a month-over-month basis, construction activity grew 0.9% in July and manufacturing activity increased 0.7%. The electricity, gas and water sector recorded 0.0% month-over-month growth, while mining activity declined 1.8%.

The year-over-year industrial activity growth in July was triple the 0.8% reading in June. The month-over-month growth was more than double the 0.2% increase recorded in June.

Industrial activity has now increased on an annual basis across four consecutive months. July marked the second consecutive month with sequential growth in industrial activity.

Industrial activity is up slightly this year 

In the first seven months of 2026, industrial activity grew 0.4% compared to the same period of last year, according to INEGI.

Mining activity increased 3.5% annually in the January-July period, while construction activity grew 2.8%.

Manufacturing activity — the largest contributor to the industrial data — declined 0.7% on a year-over-year basis while the electricity, gas and water sectors collectively recorded 0.0% annual growth.

The modest year-over-year growth between January and July came after industrial activity contracted 1.3% in 2025.

Economists from Grupo Financiero Monex said in a report that they anticipated that industrial activity would continue to grow at a “moderate” pace in the coming months.

They said that USMCA-related uncertainty and U.S. tariffs on certain strategic Mexican goods (vehicles, steel and aluminum) could continue to constrain investment decisions and the performance of export-oriented manufacturing sectors.

With reports from El Economista