FX.co ★ Mexican Economic Activity Shrinks for 2nd Month

Mexico's economic activity experienced a 0.1% decline year-on-year in January 2025, representing the second consecutive decrease and aligning with market predictions. This sluggish performance was primarily due to a downturn in secondary activities, which fell by 2.9% compared to a 2.7% drop in December. Key contributors to this decline included the construction sector, which contracted by 6.7% against a previous 7.5% decrease, and the manufacturing sector, which decreased by 0.9% following a 0.6% decline. Conversely, primary activities saw a significant recovery, with a 14.8% increase compared to an 8% decline. This resurgence was mainly fueled by the agriculture sector, which surged by 22.4% against an earlier drop of 11.3%, and to a lesser extent by livestock, which grew by 1.3% compared to 1.1%. Meanwhile, services saw a modest growth of 0.8% in January, following a 1.3% rise in the previous month. When adjusted for seasonal variations, the monthly economic activity in Mexico contracted by 0.2%, after a revised decline of 1.1% in the prior month.