The Mexican manufacturing sector faced challenges in July, revealing a complex economic landscape. Employment in this vital industry grew by a mere 0.08% compared to June.
However, a year-over-year comparison paints a bleaker picture, showing a 1.9% decline from July 2023. This downward trend has persisted for eleven consecutive months, according to the Monthly Manufacturing Industry Survey (EMIM).
The National Institute of Geography and Statistics (INEGI) reported these figures, highlighting the sector’s ongoing struggles.
The manufacturing industry’s weak performance extends beyond employment figures. July saw a monthly decrease of 0.8% in overall manufacturing activity.
The first seven months of 2024 have witnessed a slight decline of 0.02% in the sector. This current slump contrasts sharply with the growth rate of 1.8% observed from January to July 2023.
The Monthly Indicator of Industrial Activity (IMAI) released these statistics on September 11th, further emphasizing the sector’s challenges.
A closer look at the EMIM data reveals a nuanced picture across different manufacturing branches. Out of 21 measured branches, 11 experienced monthly declines in employment. The furniture sector saw the steepest drop at 4.7%.
Other notable declines included the paper industry, which fell by 1.8%, and textile inputs and finishing, which decreased by 1.1%.
These figures underscore the widespread nature of the employment challenges facing Mexican manufacturing. The first seven months of the year have seen a cumulative 1.8% decrease in manufacturing employment.
This decline stands in stark contrast to the 0.2% growth observed during the same period in 2023. This downturn marks the first such decline since 2020 when the COVID-19 pandemic severely impacted global economies.
The current situation reflects ongoing challenges faced by the Mexican manufacturing sector as it navigates a complex economic landscape.
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