Mexico manufacturing downturn deepens in April – PMI

Mexico’s manufacturing sector faced its steepest contraction in over four years in April, with the S&P Global Manufacturing Purchasing Managers’ Index (PMI) dropping to 44.8 from 46.5 in March, reflecting the sharpest deterioration since February 2021.

The decline was driven by a near-record plunge in new export orders amid growing concerns over US trade tariffs, which also triggered cancellations, postponed investments, and weakened client demand.

Production volumes fell at the fastest rate since early 2021, while overall sales slumped. Business sentiment turned negative for the first time since November 2020, with firms citing rising cost pressures, currency depreciation, cashflow issues, and intense competition.

Input cost inflation accelerated to a two-and-a-half-year high, particularly for chemicals, metals, plastics, and electronics, though selling price increases remained moderate.

Faced with subdued demand, manufacturers reduced staff, cut purchases, and trimmed inventories. Factory employment fell solidly, and some firms transitioned workers to part-time or technical breaks. Outstanding business volumes rose as companies paused work on previously placed orders. The sector’s downturn has now extended to ten consecutive months.

Attribution: Amwal Al Ghad English
Subediting: M. S. Salama