Mexican Business Sentiment Slips After Five Months of Gains

Business confidence in Mexico fell by 0.8 points in October compared to the previous month, ending a five-month streak of positive momentum, according to data from the National Institute of Statistics and Geography (INEGI).

The seasonally adjusted Global Indicator of Business Confidence Opinion (IGOEC) reached 48.6 points, marking the eighth consecutive month below the 50-point threshold, a level that signals a pessimistic outlook on the national economy and business environment.

All four sectors included in the indicator—manufacturing, construction, trade, and non-financial private services—reported declines. The largest monthly drop occurred in the non-financial private services sector, followed by construction.

Business leaders expressed the greatest pessimism regarding investment opportunities and the country’s current economic situation. In annual terms, the IGOEC fell 3.4 points, reflecting diminished optimism across all four sectors.

Non-Financial Private Services fell 1.3 points to 49.2, with the "adequate time to invest" component dropping 4.1 points.

Construction decreased 0.6 points to 45.8, remaining below 50 for 14 consecutive months. The sector showed growing pessimism in the "adequate time to invest" metric, which fell 2.2 points.

Manufacturing declined 0.4 points to 49.1, marking the eighth consecutive month below 50. The largest decreases were in "adequate time to invest" (-0.8 points) and "the country's present economic situation" (-0.6 points).

Trade registered a modest 0.3-point decline to 47.9 points, also below 50 for the eighth month in a row. While confidence in "the country's present economic situation" fell 0.6 points, optimism regarding investment rose 0.8 points.

The IGOEC and the Sectoral Business Confidence Indicators (ICE) are based on the Monthly Business Opinion Survey (EMOE), which collects the views of business directors on Mexico’s economic conditions and their own companies.