Industrial activity closes the year down – El Sol de México

The country’s industrial activity closed the year on the downside, registering a drop of 0.7 percent in December compared to the previous month, adding two negative monthly results in a row, Inegi reported this Friday.

This monthly drop was due to negative results in three of the four components of the Monthly Industrial Activity Indicator (IMAI): basic services, manufacturing and construction.

Only mining reported a positive balance, increasing 1.4 percent compared to November, according to the report.

In its annual comparison, industrial activity grew 1.2 percent in December, driven mainly by the construction industry, which showed an increase of 15.5 percent.

An analysis by Banco Base indicates that the notable increase in construction is mainly due to public investment in priority civil engineering works for the government, such as the Maya Train and the Tulum International Airport, both inaugurated in the last month of the year.

Given this scenario, the financial institution anticipated that in the coming months there will be declines in construction that impact industrial activity.

“Because government spending at high levels is not sustainable in the long term, it is likely that during 2024 a slowdown in construction will be observed and that after the elections, a drop will be recorded at an annual rate, mainly in the construction of civil engineering works, given the high comparison base,” he indicated.

In the accumulated year, the IMAI grew 3.56 percent compared to 2022. All components showed positive results, but the construction industry once again stood out with a double-digit increase.

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