Production of goods decreases in July, although exports see an increase
Mexico's manufacturing sector has experienced a challenging period, with a decline in employment and production for the fourth consecutive month. According to the National Institute of Geography and Statistics (INEGI), manufacturing production volume decreased by 2.7% in July compared to the same month last year.
The self-employed workforce saw a 2.1% decline in July and a dramatic 16% drop in employment since last year. The number of hours worked also decreased by 0.2% in July compared to June, and 2.2% compared to 2024. People employed in the manufacturing industry declined by 0.2%, equivalent to 19,000 jobs lost in July.
The manufacturing sector contributed more than 90% of the total export value in July, amounting to US $52.3 million. However, the sector's exports increased only by 4% in July compared to the same month last year, reaching a total of US $56.7 billion. The automotive sector's export value declined by 7% to US $15.9 billion in July, with exports to the United States falling by 9.2%, while exports to other destinations increased by 4.9%.
On the other hand, the oil sector exports decreased by 23% year-over-year to US $1.9 billion. In contrast, Mexico's exports in July 2025 increased by 14.7% compared to July 2024.
Both internal and external pressures have contributed to the industry's slowdown. Economic uncertainty, low levels of productive investment, and reduced domestic and international demand have weakened the sector. Inflationary pressures and international risks have further constrained manufacturing activity.
However, not all sectors within the manufacturing industry have been equally affected. Companies in the textile and clothing industry that rely heavily on export markets, particularly in export-oriented sectors, have been hit particularly hard by the economic downturn compared to July 2024. In contrast, those focusing on sustainability, digital innovation, and local production have managed to better withstand the negative impacts of the economic decline.
Industrial activity in Mexico has fallen for the fourth consecutive month, reflecting a challenging period for the country's economy. As the government and industry leaders work to address these challenges, it remains to be seen how the manufacturing sector will recover in the coming months.
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