Construction Sector Records 1.7% Growth in November 2025

Mexican construction companies recorded a 1.7% monthly increase in production value during November 2025, marking the strongest monthly growth of the year and the second consecutive period of expansion, according to INEGI. This uptick represents the most significant monthly advance since June 2024, signaling a short-term recovery in industrial output despite broader annual headwinds.

INEGI’s National Survey on Construction Companies (ENEC) reports that in a year-over-year comparison, the sector experienced an 8% decline in production value. This contraction follows the completion of the previous administration's major infrastructure projects, such as the Tren Maya and the Olmeca Refinery, which previously served as the primary drivers of national construction activity. The current data reflects a period of adjustment as the industry transitions away from these large-scale federal works toward different investment structures.

The total number of workers in the construction industry contracted by 0.4% in November compared to the previous month. This decline was driven by a 1% reduction in subcontracted personnel and a 0.4% drop in direct employees. On an annual basis, the workforce has diminished by 4.1%, largely due to a 4.2% decrease in personnel hired directly by construction firms. Furthermore, total hours worked fell by 0.8% monthly and 5.9% annually, indicating a reduction in operational intensity among both direct and third-party staff.

Real average remuneration saw a marginal monthly decrease of 0.2%, primarily influenced by a 1.9% drop in wages for blue-collar workers. Conversely, the annual trend shows a 4.2% increase in total compensation compared to November 2024. Blue-collar workers specifically saw their wages rise by 4.9% over the twelve-month period, even as total hours and employment numbers trended downward.

Data from INEGI’s Monthly Indicator of Industrial Activity (IMAI) confirms that the construction sector was a primary driver of industrial growth in November 2025, expanding 1.6% month-over-month. This specific monthly performance outperformed all other industrial components during the same period. On an annual basis, IMAI shows construction grew 3%, with Building leading the subsectors with a 7.4% increase. However, Civil Engineering Works faced a significant annual decline of 8.2%, and Specialized Construction Works fell by 3.1%. Despite the positive monthly result, the cumulative figures for January to November 2025 show a 1.7% decrease in total construction activity compared to the previous year.

Construction Costs Start 2026 With Stable Costs

The Mexican Chamber of the Construction Industry (CMIC) indicates that 2025 was characterized by relative stability in the prices of primary materials like steel and cement, which helped mitigate some budgetary pressures during the industry's transition. Looking toward 2026, CMIC anticipates moderate price increases aligned with inflation, though it warns of continued pressure from rising labor costs, which are projected to increase by approximately 15%. This environment of controlled material costs supports the ongoing recovery in the building subsector even as civil engineering activity remains influenced by international trade factors and tariff concerns.