Industrial activity in Mexico declined in June compared to May and in annual terms, the national statistics agency INEGI reported on Monday.

INEGI reported that industrial activity — which includes activity in the manufacturing, mining, construction and electricity/water/gas sectors — fell 0.1% in June compared to May, the first month-over-month decline since March.

In annual terms, industrial activity was down 0.8% in June.

INEGI also reported that industrial activity declined 1.3% annually in the first six months of 2025. It was the first annual decline for the first six months of a year since 2020.

In 2025, industrial activity in Mexico has been affected by uncertainty related to trade with the United States, which has imposed new tariffs on a range of Mexican goods.

President Claudia Sheinbaum recently expressed confidence that construction sector activity will increase in the second half of 2025 as a result of public infrastructure projects, including the construction of new railroads and homes.

Mining, construction and electricity sector activity down in June compared to May 

INEGI reported that mining sector activity (or output) fell 1.4% in June compared to May.

Construction sector activity declined 0.2%, as did activity in the combined sector that includes the generation, transmission and distribution of electricity as well as the supply of water and natural gas.

The only sector whose activity increased in June on a sequential basis was manufacturing. Manufacturing activity increased 0.3%, INEGI reported.

Mexico’s export revenue shot up 10.6% in June, with manufacturing leading the way

The 0.1% decline in month-over-month industrial activity came after increases of 0.7% in May and 0.1% in April.

In January, industrial activity declined 0.3% before increasing 2.4% in February. Industrial activity fell 1.1% on a sequential basis in March.

Manufacturing activity stagnant in annual terms, mining declines 8.5%

INEGI data shows that there was a variation of 0.0% in manufacturing sector activity between June 2024 and the same month of this year.

Mining activity fell 8.5% annually in June, while electricity/water/gas sector activity declined 3.8%.

The only industrial sector to record a year-over-year increase in activity in June was construction, whose output rose 1.5%.

The 0.8% annual decline in industrial activity in June came after decreases in each of the previous three months.

First January-June decline since 2020

The 1.3% annual decline in industrial activity between January and June was the first decrease for the period since 2020, when the COVID pandemic and associated restrictions caused a 13.6% year-over-year reduction.

The newspaper El Economista reported that the decrease between January and June is greater than the 1.1% annual decline recorded during 2019, the first full year of Andrés Manuel López Obrador’s presidency, “which was marked by the pessimism that was created by his decision to cancel construction of the new Mexico City International Airport in Texcoco,” México state.

Mining sector activity (including oil and gas drilling) declined 8.8% annually in the first half of 2025, while activity in the electricity/water/gas industry fell 2.1%.

Construction sector activity also fell, declining 1.1% compared to the first half of 2024. Activity related to the construction of civil engineering projects declined 24.6% due to a significant decrease in spending on public works.

The manufacturing sector recorded a modest 0.1% annual increase in activity. Thirteen of 21 sub-sectors of the manufacturing industry, including the automotive sector, recorded year-over-year declines in activity in the first half of the year.

Manufacturing sectors affected by imports from Asian countries, including the wood and clothing sectors, also recorded annual declines in activity.

Among the eight manufacturing sectors that recorded increases were food production, computer equipment and electrical appliances.

Other need-to-know economic data 

• Mexico’s economy grew 0.7% in the second quarter of the year compared to the first quarter, according to preliminary data published by INEGI late last month. Annual growth in seasonally adjusted terms was 1.2% between April and June.
• The USD:MXN exchange rate at 3 p.m. Monday was 18.67.
• The Bank of Mexico’s key interest rate is set at 7.75% after a 25-basis-point cut last week.
• Mexico added a record 1.26 million formal sector jobs in July, a surge driven by the launch of a pilot program that provides employment benefits to digital platform workers.

With reports from El Economista