- Mexico: Fixed investment maintains positive momentum in July; Private consumption moderates as imported goods lose momentum
MEXICO: FIXED INVESTMENT MAINTAINS POSITIVE MOMENTUM IN JULY
In July, INEGI’s Monthly Gross Fixed Capital Formation Indicator showed that gross fixed investment maintained its positive trend (charts 1 and 2), rising for a fourth consecutive month. In original terms, it increased 6.6% year over year, compared with 7.7% previously. By component, machinery and equipment grew 6.2%, driven by an 11.5% increase in imported equipment, while the domestic component fell 2.5%. Construction expanded 7.1%, reflecting gains of 10.6% in residential construction and 3.5% in non-residential construction. Meanwhile, private investment rose 6.7% and public investment increased 6.2%. From January to July, gross fixed investment grew 1.7%, with construction up 4.1% and machinery and equipment down 1.0%.
PRIVATE CONSUMPTION MODERATES AS IMPORTED GOODS LOSE MOMENTUM
In the same month, private consumption moderated (chart 3), posting a year-over-year increase of 1.1% in original terms, down from 2.1% previously. Imported goods slowed significantly, from 6.6% in the previous reading to a marginal increase of just 0.1%, amid declines of 3.4% in both semi-durable and nondurable goods. Domestic consumption grew 1.0%, compared with 1.6% previously. Within this component, durable goods rebounded by 4.0% after several months of weakness, nondurable goods rose 1.4%, and semi-durable goods declined 0.5%. Domestic services increased 0.7%. In the first seven months of 2026, private consumption rose 2.0% year over year, still supported by an 8.1% increase in imported goods, while the domestic component grew just 0.3%.
—Rodolfo Mitchell, Miguel Saldaña & Martha Cordova
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