In brief
In a report released Tuesday, the Mexican Institute of Finance Executives (IMEF) noted that the manufacturing indicator barely escaped contraction while the non‑manufacturing composite re‑entered growth, signaling a tentative shift. However, the institute cautions that uneven sectoral progress means a sustained turnaround is not yet evident.
On Tuesday, Xinhua reported that Mexico’s economy is showing early signs of improvement, with the manufacturing sector stabilising and services and commerce sectors beginning to expand.
The IMEF’s manufacturing indicator edged up slightly from 49.7 points in September to 49.8 in October, remaining just below the neutrality threshold and still in the contraction zone for the 31st month in a row.
In contrast, the IMEF non‑manufacturing indicator, covering commerce and services, rose from 49.7 to 50.6 points and re‑entered the expansion zone after a prolonged period of weakness.
"However, the evolution of their respective trend‑cycle components suggests that the recovery remains fragile and uneven," the institute cautioned, stating that it is still premature to confirm a shift in the cycle toward a phase of solid and sustained expansion.
Mexico’s government projects economic growth of between 1 and 2 percent by the end of 2026, and the country’s economy expanded by 0.5 percent in 2025, driven primarily by the services sector amid industrial weakness linked to the United States.
