MexECON Blog

September Fixed Investment Falls 0.4 Percent

Gross fixed investment in Mexico fell by a seasonally-adjusted 0.4% during September, for its first decline since January.  According to the report, the decline in September stemmed entirely from a 1.9% decrease in machinery and equipment investment.  That category has now fallen in three of the last four months.  In contrast, September construction rose 0.3%.  Within this category, residential construction continued its recovery with an increase of 0.7%, marking its eighth straight monthly gain, and non-residential construction rose by 0.5%, marking its fourth straight gain.

On an unadjusted basis, total fixed investment in September was up 5.7% from the same month one year earlier.  September machinery and equipment investment was up 8.5% year-over-year, while construction was up 4.2%.

The report was released today by INEGI, the official statistics agency.

Comment:  Mexican fixed investment remains on an uptrend, in spite of the small pullback in September.  The recent declines in machinery and equipment investment bear watching, but on the positive side, homebuilding continues its strong rebound and private non-residential construction has probably also been rising.  The remaining weak spot is public works construction.  If machinery and equipment investment starts increasing again, and if private residential and non-residential construction continue to grow, any upturn in public works construction would be a particularly good sign for Mexican employment and overall economic growth.

Patrick Fearon, CFA
Vice President, Fund Management

Fixed Investment 1409

0 comment(s) for “September Fixed Investment Falls 0.4 Percent”

    Leave a Comment