01.09.202515:07:47UTC+00Mexico Factory Activity Expands After 14-Month Contraction Streak

In August 2025, Mexico's S&P Global Manufacturing PMI climbed to 50.2, up from 49.1 in July, marking its first venture above the 50.0 mark in 14 months and signaling an upswing in manufacturing activity. This increase is primarily attributed to a resurgence in new orders — the first such uptick in over a year — as companies benefited from the approval of delayed quotations and the successful introduction of new products. Nonetheless, some firms noted the ongoing negative effects of U.S. tariffs. Purchasing activities showed signs of near-stabilization following a period of significant contraction spanning seven months. Employment numbers continued to fall, with a slight acceleration in job cuts from the previous month, although the reduction remained relatively minor. August saw a steep rise in input costs, while the increase in selling prices was minimal, as most producers chose to absorb the higher input expenses. Furthermore, business sentiment took a considerable hit compared to July, as firms adopted a more cautious stance regarding their outlook for the year ahead, despite some respondents expressing optimism about potential output improvements.