Mining sector suffered a 1.4% decline in June, contrasting a two-month upward industrial trend, as reported by Inegi.
Mexico's Industrial Activity Index experienced a 0.1% decrease month-on-month (seasonally adjusted) in June 2025, marking a reversal from the 0.7% gain in May[1][2]. The manufacturing sector showed a modest improvement, growing by 0.3% in June, compared to a 0.5% increase in May[1][2]. However, this growth was not enough to counterbalance the decline in other sectors.
Causes of the 0.1% Decrease in June 2025
The manufacturing sector stagnation contributed only marginally to the overall output, insufficient to counterbalance the losses in other sectors[1][2]. The mining sector downturn worsened significantly, with a contraction of 8.6% year-on-year, exerting downward pressure on overall industrial activity[1][2].
The construction sector also reported a decrease, with a 0.2% monthly drop in June 2025. Specialized work in the construction industry saw a decline of 1.0% in the same period[1][2].
External economic factors and the broader economic context may have also played a role in the decline. Mexico’s manufacturing sector faces stagnation partly due to concerns about rising input costs and uncertain demand conditions, as global purchasing managers' indexes indicate a cautious operating environment[5]. Additionally, inflation pressures have been moderating in mid-2025, but their impact on industrial input costs and consumer demand has yet to translate into a robust industrial recovery[4][5].
Effects on the Mining and Manufacturing Sectors
The intensified mining contraction suggests weakening export revenue and possible disruptions in commodity extraction, impacting investment, employment, and regional economies dependent on mining.
The manufacturing sector's slow growth amid broader economic headwinds points to fragile industrial resilience, risking slower job creation and production growth if cost pressures and external demand remain subdued.
Summary
The 0.1% monthly decline in Mexico’s Industrial Activity Index in June 2025 results mainly from a worsening mining sector contraction coupled with only modest manufacturing growth. Construction gains partially cushioned the drop but did not prevent an overall decrease. This scenario reflects ongoing challenges from external demand uncertainties, cost pressures, and sector-specific weaknesses in mining amidst a mixed economic environment[1][2][5].
The decrease in Mexico's Industrial Activity Index in June 2025, primarily attributed to a worsening contraction in the mining sector and only modest growth in the manufacturing industry, indicates a challenging environment for the finance and energy sectors as well, given the fragile industrial resilience and risk of slower job creation and production growth. The slow growth in the manufacturing sector may lead to increased concerns about rising input costs and uncertain demand conditions, potentially impacting the energy sector through decreased demand for energy resources.
