Mexico Macro Monitor: Gross Fixed Investment falls in February for sixth consecutive month

MEXICO - In Brief 06 May 2025 by Francisco González
Gross Fixed Investment in February: Sixth consecutive annual decline due to sharp contraction in construction investment and recent drop in M&E Gross fixed investment (GFI) contracted by -6.0% YoY in February, continuing the negative trend that began in the second half of the previous year and marking the sixth consecutive decline. In previous months, the steepest drop had been in the construction sector. However, in February, in addition to the -4.9% YoY decline in construction, machinery and equipment (M&E) fell by -6.3%. The decline in M&E is the second in a row after sustained growth since February 2021. Growth in this component had previously been driven by purchases of imported transport equipment. However, in both January and February, these purchases fell by an average of -11.0% YoY, while also in February both imported (-9.2%) and domestic (-7.0%) non-transport M&E suffered declines. As a result, the only M&E component still showing growth is domestic transport equipment, albeit with a slowdown—expanding by 2.0% YoY in February compared to 13% in 2024. GRAPH 1 GFI by type and buyer, Feb. 2025 (Annual % Change) 1/ 1/Note: Seasonally adjusted figures, except for private and public investment which uses original data Source: Data FxRates® & INEGI, Analysis GEA Grupo de Economistas y Asociados. The decline in construction stems from a sharp contraction in both public and private non-residential components, while the residential segment reported growth. Construction activity recorded its seventh consecutive drop, contrasting sharply with its average growth in the first half of 2024 (10.5% annual) and full-year 2023 (18.5%). This decline was driven by the non-reside...

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