Construction Grows 1.7% in June 2025

The production value of Mexico's construction industry grew 1.7% year-over-year in June 2025, according to INEGI. Overall growth was driven by gains in building and specialized construction, which offset a double-digit contraction in the civil engineering works subsector.

According to INEGI’s Monthly Indicator of Industrial Activity (IMAI), the value of construction grew 1.7% in June 2025 compared to the same month in 2024. However, the sector showed a 1.1% contraction when compared to its level in January 2025. Annual growth was driven by an 8.1% year-over-year increase in the building and edification segment and a 1.3% rise in specialized construction works. These gains successfully offset a 20% contraction in the civil engineering subsector over the same period.

On a monthly basis, the construction sector experienced a 0.2% contraction, mainly driven by the specialized works for construction segment, with a 1% contraction, and the edification segment with 0.3%. The only segment that registered growth was construction of civil engineering works with a 1.7% increase. 

Southern Mexico Leads Losses 

According to the latest INEGI National Survey on Construction Companies (ENEC), while several northern and central states registered double-digit contractions in May 2025, three southern states were also among the five with the sharpest declines. ENEC shows that Oaxaca was the state with the deepest contraction with 68.7%. The state was followed by Tlaxcala with 61.7%,  Tabasco with 59%, Quintana Roo with 58.6%, and Hidalgo with 57.8%. 

Conversely, southern states did not appear among the top performers. According to ENEC data, the states that saw the largest expansion in the value of their construction sectors were the State of Mexico, with growth of 37.1%; Zacatecas, with 34.6%; Baja California Sur, with 32.6%; Mexico City, with 21.6%; and Tamaulipas, with 19.8%.

Construction Needed to Boost Economic Growth 

Luis Méndez Jaled, President, Mexican Chamber of the Construction Industry (CMIC), agreed with President Claudia Sheinbaum’s Plan México, adding that investing in the construction sector is the first step toward broader economic growth. He explained that construction acts as a leading indicator of the economic cycle; when the sector reactivates, it energizes the entire productive chain by increasing demand for materials, generating employment, and driving consumption, often before these effects are officially reflected in the GDP.

Méndez called for public policies to strengthen infrastructure investment as a tool to accelerate economic development. To effectively incorporate construction companies into Plan México, he proposed strengthening the national value chain with higher national content requirements in public works and promoting commercial financing through new regulatory and fiscal incentives. He also urged the acceleration of 46 infrastructure pre-projects that CMIC has in development and the implementation of expansive policies that provide legal certainty and fiscal stimulus to encourage private investment.