Construction Grows 1.6% in November but Civil Work Shrinks

Mexico’s construction activity strengthened in November 2025, helping push overall industrial activity into positive territory on a monthly basis. INEGI’s Monthly Indicator of Industrial Activity (IMAI) shows construction rose 1.6% month over month (seasonally adjusted), the strongest gain among the industrial components, while the overall industrial index increased 0.6% versus October.

According to the report, on an annual, seasonally adjusted basis, construction grew 3.0% in November 2025, even as total industrial activity edged down 0.1% year over year, reflecting ongoing weakness in mining and manufacturing.

INEGI’s original (non-seasonally adjusted) breakdown underscores a “two-speed” construction sector. In November 2025, construction expanded 3.7% year over year, led by building at 7.4%, while civil engineering works fell 8.2% and specialized construction works declined 3.1%.

The same split is visible in cumulative performance: from January–November 2025, total construction was down 1.7% year over year, dragged by a 24.5% contraction in civil engineering works, despite building still up 3.8% over the period.

November’s improvement follows sharp swings in the prior months. In September 2025, construction activity fell 7.2% year over year, with civil engineering works down 27.2%, reflecting a steep pullback in public-project execution; by October 2025, construction rebounded with a 3.8% month-on-month increase.

While IMAI points to higher activity, INEGI’s construction-company survey (ENEC), which tracks production value and labor metrics, has shown a more fragile operating picture through mid-to-late 2025. Production value was down 17.7% year over year in July and down 19.1% in August, alongside double-digit declines in employment and hours worked in those months.

Even in October 2025, ENEC reported production value down 14% year over year (with only a marginal monthly uptick), illustrating the gap that can emerge between “activity volumes” and the value of executed works amid weaker public civil-works pipelines and shifting project mix.

The persistent underperformance in civil engineering aligns with 2025’s fiscal consolidation and reduced public investment. From January–August 2025, federal public investment totaled MX$509.7 billion (US$27.77 billion), a 33.7% real annual decline, according to SHCP figures cited by MBN.

Private investment indicators also pointed to softer capital formation earlier in the year. INEGI data shows Mexico’s gross fixed investment fell 7.8% year over year in February 2025, driven in part by a 5.2% drop in construction investment.

BBVA Research has framed 2025 as a year where private building provides the main cushion while civil works contracts on lower public spending, with expectations of a gradual recovery in 2026 if public investment normalizes and housing demand remains resilient.