Mexico’s Industrial Engine Cools, But Beats Forecasts

Mexico’s industrial production growth eased in the latest reading, with month-on-month output rising 0.6%, down from 0.9% previously. The 0.3 percentage-point slowdown marks a one-third reduction in the pace of expansion, signaling a moderation in industrial momentum even as activity remains in positive territory.

Nevertheless, the 0.6% gain decisively beat analysts’ expectations for flat growth, presenting a mildly positive surprise for risk assets. Mexican equities, particularly industrials, materials, and cyclicals tied to manufacturing and construction, are likely to see supportive sentiment as investors reassess the durability of the recovery. The impact leans more toward the short term, influencing near-term market tone rather than meaningfully reshaping longer-term policy expectations.